City & Guilds Executives Awarded Million-Pound Bonuses Post-Privatization

Two senior executives at City & Guilds have received substantial bonuses following the privatization of the skills charity’s business. Kirstie Donnelly, the chief executive, has been awarded a bonus of £1.7 million, while finance director Abid Ismail received £1.2 million. This financial revelation comes shortly after the organization was sold to international certification company PeopleCert in October 2023.

As City & Guilds transitions into the private sector, it faces challenges, including a recent announcement of a £22 million cost-cutting initiative and a reduction in its UK workforce. The organization’s shift from a charitable model to a privatized entity has raised concerns about its future direction and operational strategies.

Changes Following Privatization

City & Guilds, originally established in 1878, has a long history of providing vocational training and qualifications across various fields. The organization, under its former charitable umbrella, had been crucial in developing technical education in the UK. The sale to PeopleCert, which reportedly generated between £180 million and £200 million, is aimed at securing the charity’s long-term objectives while enhancing investment opportunities for the newly privatized training business.

Despite this financial boost, PeopleCert’s recent presentation to investors outlined plans to implement significant cost reductions at City & Guilds. The document indicated that £22 million in savings could be realized, including £13 million from personnel cost synergies. This is expected to result in a reduction of staff, with approximately 300 employees leaving annually, and plans to relocate a portion of jobs to Greece, where costs could be up to 50% lower.

Executive Compensation Amid Workforce Cuts

The decision to award substantial bonuses to Donnelly and Ismail has sparked debate, particularly as the organization is downsizing. Donnelly’s salary has also increased by £100,000, bringing her total compensation to approximately £430,000, while Ismail’s salary rose by 30%, now totaling £300,000. This compensation structure raises questions about the balance between executive remuneration and the implications for staff retention and morale during a period of restructuring.

A spokesperson for City & Guilds emphasized that the charity’s accounts will reflect its financial health and will be published in January 2026. They stated, “Bonuses for eligible employees reflecting performance in 2025 are payable in line with CGLI remuneration policy.” The spokesperson assured that any payments made adhere to existing bonus schemes and are aligned with standard commercial practices.

City & Guilds has been a notable institution in vocational training, with a legacy that includes alumni such as chefs Jamie Oliver and Gordon Ramsay, as well as fashion designer Karen Millen. As the organization navigates its transition into private ownership, its future strategy will be closely monitored by stakeholders in the education and training sectors.