BP shareholders have revolted over a 20 percent pay hike for CEO Bob Dudley, who has presided over a record net loss and thousands of job cuts.  It's the one of the biggest rejections to date of a corporate pay deal in the UK.

At the annual shareholders meeting in London, 59 percent of shareholders voted against the AU$25 Million remuneration for Dudley. 

"We think it sends the wrong message.  It shows that the board is out of touch," said Ashley Hamilton Claxton, corporate governance manager at Royal London Asset Management, which is a major shareholder in BP.  Other big shareholder groups like Aberdeen Asset Management, Glass Lewis, Pirc, and Institutional Shareholder Services have also expressed their opposition.  ShareSoc said the deal is "simply too high".

The idea that Mr. Dudley earned a massive raise raised the hackles of investors who noted that BP posted a record loss of $US6.5 Billion in 2015.  It's The company also must pay a $US10 billion provision for the legal settlement relating to its the massive oil spill in the Gulf of Mexico.

The vote is non-binding on BP.  But many observers say the shareholder rebellion will have a lasting impact on corporate governance in the UK.

"British boards are now in the last chance saloon, if the will of shareholders in cases like this is ignored, it will only be a matter of time before the government introduces tougher regulations on executive pay," said Simon Walker director general of The Institute of Directors, which is a professional frat of high level executives.