BP (BP - Get Report) has agreed to cut millions of pounds from its chief executive's maximum pay deals for the next three years, according to Sky News

The move comes in response to BP shareholders demanding tougher criteria for awarding bonuses to executives.

BP chose to reduce CEO Bob Dudley's maximum long-term incentive plan bonus from seven times his $1.85m (£1.48m) basic salary to five times, sources told Sky News

Under the plans to be published this week, Dudley will get half of his maximum annual bonus entitlement, about £1.66m or 112.5% of his base salary, should BP reach its on-target performance levels.

Previously, he could have earned 150% of his salary in short-term bonuses just for meeting those targets.