The new private owners of the prominent vocational training body City & Guilds have overseen a massive increase in executive pay, while simultaneously implementing a severe cost-cutting programme that is reducing the UK workforce. This development intensifies the scandal surrounding the organisation's controversial sale from its charitable foundation.
Soaring Pay Packets Amidst Austerity Measures
The total remuneration for the top six executives at City & Guilds (C&G) has skyrocketed by approximately 240% in the current financial year. According to information obtained by the Guardian, their combined pay has risen to around £6.2m, up from the £1.8m reported in the results to 31 August 2024. This staggering increase includes one-off bonuses exceeding £4m distributed among the six leaders.
Chief Executive Kirstie Donnelly reportedly received a £1.7m bonus, while Finance Director Abid Ismail was awarded £1.2m. Alongside these extraordinary payments, the group also benefited from a cumulative 13% rise in salary and annual bonus scheme payments, now totalling over £2m. In total, one-off bonuses paid to executives at the newly privatised company amount to roughly £4.5m.
A Parallel Narrative of Deep Cost-Cuts and Job Relocation
This surge in executive wealth stands in stark contrast to the company's operational strategy. Since its acquisition by the international certification firm PeopleCert in October last year, City & Guilds has embarked on a stringent £22m cost-reduction drive. A significant portion of these savings, £13m labelled as "personnel cost synergies," is linked to workforce changes.
A presentation published by PeopleCert last month outlined a plan to manage the company's staff churn, which sees about 300 people leave annually. The strategy involves relocating a third of these roles to Greece, where costs are "up to 50% lower." Another third of vacancies are due to remain unfilled because of overlapping functions, with only the final third being replaced by hires within the UK. The presentation has since been removed from PeopleCert's website.
Investigation and Intensifying Scrutiny
The timing of the lavish pay awards has proven deeply embarrassing for both the privatised company and its former owner, the charity City & Guilds London Institute (CGLI). The sale itself is already under a statutory inquiry by the Charity Commission, triggered after revelations that Donnelly and Ismail received million-pound bonuses following the privatisation.
In a recent escalation, both Donnelly and Ismail have been placed on leave as PeopleCert launched an internal investigation into the circumstances of the acquisition. While CGLI trustees have stated they were not involved in post-deal remuneration talks and voted not to pay sale-related bonuses, discussions about potential bonuses of up to four times salary were reportedly held among trustees in May 2025.
When questioned about the coincidence of soaring executive pay and widespread cost-cutting, a PeopleCert spokesperson declined to comment, stating: “The business doesn’t have any further comment at this stage.” The charity maintains it is cooperating fully with the Commission's inquiry and is confident all trustee actions were "proper, transparent, and in line with our charitable purpose."
