The newly privatized City & Guilds has dramatically increased executive compensation while simultaneously pursuing aggressive cost reduction. Top six executives saw pay rise by approximately 240% to roughly £6.2 million in the current financial year, compared to £1.8 million previously. This sharp increase occurred as the vocational training organization implemented a £22 million cost-cutting initiative and reduced its UK workforce significantly.
The compensation surge includes substantial one-off bonuses totaling around £4.5 million distributed among senior leadership. Chief executive Kirstie Donnelly received £1.7 million while finance director Abid Ismail obtained £1.2 million. Beyond these exceptional payments, base salaries and regular bonus schemes increased by approximately 13%, bringing the six executives’ combined ongoing compensation to over £2 million annually.
The acquisition by international certification firm PeopleCert from the former charity owner City & Guilds London Institute has generated significant controversy. Both Donnelly and Ismail were placed on leave as PeopleCert initiated an investigation into the transaction. The Charity Commission launched a statutory inquiry following revelations about the substantial bonuses awarded following privatization.
Cost reduction strategies reveal substantial workforce restructuring plans. Thirteen million pounds of savings target personnel costs primarily through not replacing departing staff with UK-based employees. Internal documents indicate PeopleCert plans relocating approximately one-third of departing roles to Greece at significantly reduced labor costs, while an equivalent number of positions will simply remain unfilled due to overlapping functions.
The apparent contradiction between executive pay increases and workforce reductions has generated criticism. The charity previously stated trustees held no involvement in post-sale remuneration discussions, characterizing compensation decisions as the new owners’ responsibility. Trustee discussions in 2024 considered bonuses at four times salary levels, though the charity later claimed trustees voted against sale-related bonuses, despite figures resembling those ultimately awarded by the private company.
