UDG executive bonuses cut by 60%

Management bonuses at UDG Healthcare were cut by nearly 60% last year, despite the group delivering a strong financial performance.

Combined executive pay at the Dublin-headquartered diversified healthcare services group also dropped by just over 1.4%, from €4.23m to €4.17m, its annual report for the 12 months to the end of September last shows.

The group, which, last year, changed its name from United Drug, paid its chief executive, Liam FitzGerald a basic salary of €570,000. This was unchanged on the previous year, but his total remuneration package increased slightly from €1.697m to just under €1.71m. As with his salary, Mr FitzGerald’s pension contributions remained unchanged at €228,000, but his long-term incentives package jumped from €447,000 to €753,000. His annual bonus, however, fell by 72% to €114,000.

Chief financial officer, Alan Ralph saw his total package increase from €833,000 to €887,000; while Chris Corbin, the managing director of the group’s Ashfield Commercial & Medical Services division, was paid a total of €904,000; down from €927,000 a year earlier. Barry McGrane, the group’s former finance director, who stepped down as an executive director last May, earned a total package of €673,000 last year, as opposed to €772,000 in the previous year.

In November, UDG Healthcare reported a strong set of annual results, which showed an 11% increase in revenue, to just over €2bn; a 13% rise in operating profit and a 7% jump in earnings per share. Its dividend pay-out to shareholders was increased by 6% on the previous year to 9.56c per share.

Nevertheless, combined annual bonus payments to the group’s executive directors fell by 59.2% — from €944,000 to €385,000. The current financial year will see no increases in the basic salaries or bonuses of executive directors.