The acquisition of the vocational training body City & Guilds by the international certification company PeopleCert has led to a significant increase in the pay of the organisation’s top executives, even as the new owners implement a £22 million cost-cutting drive.
According to reports, the combined pay of City & Guilds’ six highest-ranking executives has risen by around 240% in the current financial year, reaching approximately £6.2 million, up from £1.8 million in the previous results to 31 August 2024. This substantial increase is believed to include one-off bonuses of more than £4 million, as well as a cumulative rise of around 13% in salaries and payments from an annual bonus scheme, now totalling over £2 million for the group of six.
The pay awards have come to light amidst a scandal surrounding the sale of City & Guilds’ qualification awards business to PeopleCert. The former charity, the City & Guilds London Institute (CGLI), has faced a statutory inquiry by the Charity Commission after it was revealed that the chief executive, Kirstie Donnelly, and the finance director, Abid Ismail, were handed million-pound bonuses following the privatisation.
PeopleCert’s presentation last month outlined the company’s plans to achieve £13 million in “personnel cost synergies” by failing to replace staff leaving the institute with UK hires and relocating a third of those roles to Greece at a cost up to 50% lower. The presentation also stated that an additional number of roles “are due to not be replaced due to overlapping functions”, while the remaining leavers will be replaced with hires in the UK.
The pay awards coinciding with the extensive cost-cutting programme have proved an embarrassment to the privatised company and its former charity owner. CGLI has stated that the trustees were not involved in any pre- or post-deal conversations regarding remuneration matters for the executives, but the Guardian understands that discussions were taking place among the charity’s trustees in 2024, and they voted on the bonuses in May 2025, when bonuses of four times salary were considered.
While CGLI has said that the trustees subsequently voted not to pay bonuses relating to the sale, the figures discussed appear similar to those eventually awarded to the executives by the private company. PeopleCert has not provided an explanation for this apparent coincidence when questioned by the Guardian.
