Energy giant BP has cut the pay package of chief executive Bob Dudley by 40%, to $11.6m, in response to shareholder concerns.

BP becomes the latest board to act on pay against a backdrop of increasing shareholder activity to rein in some of the more excessive deals.

Reuters reports Ashley Hamilton Claxton, head of governance Royal London Asset Management, describing the move as a “milestone”.

“We applaud the BP remuneration committee for being proactive in responding to the shareholder revolt last year and see this as a milestone in the engagement between companies and shareholders,” she said.

In BP’s annual report, published this week, Ann Dowling, chair of BP’s remuneration committee, said:”We determined executive pay for 2016 and have exercised downward discretion in coming to our final decision.”

She added: “I have consulted widely with shareholders and listened to and sought to act on their concerns, and have been sensitive to developments in the society in which we work.”