Investors objected to a scheme under which the management stood to benefit if the share price recovered to the levels of 12 months ago.

According to the Financial Times, the plan woThe scheme was designed so that 100 executives would reap 10 per cent of additional shareholder returns - dividends plus share price appreciation - above a threshold of 110p.

The scheme was designed so that 100 executives would reap 10 per cent of additional shareholder returns - dividends plus share price appreciation - above a threshold of 110p.

Pendragon chief executive Trevor Finn was set to receive a 17 per cent stake of the pool.

The management team, which has presided over a share price fall of 75 per cent in the past year, has now abandoned the incentive plans, which one shareholder described to the Financial Times as “outrageous”.

Pendragon maintained it had support for the scheme but it would not go ahead because of “broader market conditions”.