City & Guilds Executives Receive Substantial Bonuses Post-Privatization

Executives at City & Guilds have received significant bonuses following the organization’s recent acquisition by the international certification company PeopleCert. The payments include a bonus of £1.7 million for Kirstie Donnelly, the chief executive, and £1.2 million for finance director Abid Ismail. These awards come amid a period of transition for the training and qualifications organization, which has shifted from charitable to private sector operations.

The privatization, completed in October 2023, marks a critical juncture for City & Guilds as it faces the challenges of operating in a competitive marketplace. Recently, the organization announced a £22 million cost-cutting initiative that includes a reduction in its UK workforce. This move follows the sale of its training and awards division by the City & Guilds London Institute (CGLI), which is now focused on its charitable objectives.

Donnelly’s salary has also increased by £100,000, bringing her total compensation to approximately £430,000. Ismail’s salary has risen by 30%, now totaling around £300,000. These financial adjustments have raised eyebrows, particularly in light of the organization’s plans to streamline operations.

Founded in 1878, City & Guilds has a long history of providing technical education and vocational training. The organization, which offers qualifications and apprenticeships in various fields, serves around 1.1 million individuals annually. Its alumni include notable figures such as chefs Jamie Oliver and Gordon Ramsay, as well as former England football manager Gareth Southgate.

The CGLI’s decision to sell City & Guilds to PeopleCert has resulted in a financial windfall estimated between £180 million and £200 million. This infusion of capital is intended to secure the long-term future of the charitable organization and enhance investment opportunities for the now-private training business.

As part of the restructuring, PeopleCert has identified £22 million in potential savings, with approximately £13 million derived from personnel cost synergies. This strategy includes not replacing staff who leave the organization, which currently employs over 1,600 individuals, alongside 1,800 associates on short-term contracts. PeopleCert’s plan involves relocating a third of these positions to Greece, where operational costs are significantly lower.

City & Guilds will continue to operate under its established brand following the sale. A spokesperson for the organization emphasized that CGLI will publish its accounts in January 2026, detailing pay and remuneration in line with its established policies. They confirmed that bonuses for eligible employees, reflecting performance in 2025, will adhere to existing remuneration frameworks.

The transition to privatization presents both opportunities and challenges for City & Guilds as it strives to maintain its legacy while adapting to a new operational model. The upcoming financial reports will provide further insight into how the organization plans to navigate this significant shift in its operations and strategy.