Two shareholder advisers, Institutional Shareholder Services and Glass Lewis, have also recommended rejecting the BP executives' 2015 remuneration packages, saying they were too generous considering the British oil and gas company's poor financial performance.

BP has proposed increasing Dudley's remuneration by 20 percent and paying executives maximum bonuses despite posting its biggest-ever annual loss following a near 70 percent slump in oil prices.

"This proposed increase is both unreasonable and insensitive ... We will be voting against this proposal," said Ashley Hamilton Claxton, corporate governance manager at Royal London Asset Management, which holds 0.7 percent of BP shares worth more than 400 million pounds.

ISS said BP's remuneration report was flawed because directors receive maximum bonus payments without hitting all targets.

"BP's performance surpassed the board's expectations on almost all of the measures that determine remuneration - and the outcome reflects this," a BP spokesman said.

Shrinking profit margins have forced BP to slash costs across the board, resulting in more than 5,000 job losses at the company last year.

Shareholders will cast their votes on executive pay packages at the annual general meeting in London on April 14.

(Additional reporting by Ron Bousso; Editing by David Clarke and Dale Hudson)

By Karolin Schaps