UNITED DRUG chief executive Liam Fitzgerald is set to earn €480,000 on October 1st this year under the terms of a long-term incentive plan operated by the Irish healthcare services group.

This is revealed in the company’s annual report, which was published yesterday.

Mr Fitzgerald earned €240,000 last year under the terms of the plan. He is also due to receive the same amount in respect of 2007, which will be paid to him in United Drug shares. Both payments will be made in October, providing he does not leave the company “in certain circumstances”.

The annual report also shows that Mr Fitzgerald was awarded 61,538 shares in 2008 under the long-term incentive scheme. These were purchased on March 13th last year at €3.90 and are being held until they vest in 2011.

Mr Fitzgerald’s total remuneration fell by 7.8 per cent last year to €1.056 million, according to the annual report. While his salary rose to €600,000 from €552,000 in 2007, his cash performance bonus was cut by 40 per cent to €180,000.

This cut in his performance bonus came in a year when the company increased its revenues and its profits by 6 per cent and 17 per cent respectively.

Mr Fitzgerald received a benefits-in-kind payment last year of €35,000, a pension contribution of €133,000 and a share option expense of €108,000.

United Drug paid its five executive directors, including Mr Fitzgerald, €2.879 million last year in total remuneration. This was down 3.5 per cent on the €2.983 million it paid its four executive directors in 2007.

Total cash bonus payments paid to these executives were cut to €436,000 last year from €737,000 a year earlier.

Chris Corbin, managing director of the contract sales and marketing services division at United Drug, was the next best paid executive, earning total remuneration of €734,000, compared to €807,000 in 2007.

United Drug’s non-executive directors were, between them, paid €470,000 last year in fees. This was a €30,000 increase on the previous year. Chairman Ronnie Kells was paid €165,000, an increase of €15,000 on the previous year.