The two top executives at City & Guilds awarded themselves millions of pounds in bonuses without approval or awareness from their superiors, according to an internal probe into the £166m sale of the vocational charity last year. The investigation into former chief executive Kirstie Donnelly and finance chief Abid Ismail details how the pair directly approved and received nearly £3m in combined bonuses. An additional £2m went to other senior leaders and 60 junior staff through a program at the newly privatized firm, first reported by the Guardian in December. PeopleCert, the private buyer of the City & Guilds vocational awards unit in October, stated that the bonuses and pay rises breached the executives’ duties and damaged the organization’s standing. The payments took place without the knowledge of PeopleCert or the prior charity owner. The company said it plans to pursue recovery of £1.7m from Donnelly and £1.2m from Ismail, along with referrals to authorities. Established in 1878, the City & Guilds Institute created a national framework for technical education and offered qualifications across sectors from engineering to horticulture. Before the sale, the brand belonged to the City & Guilds London Institute charity, which planned to direct proceeds toward vocational training support. The privatized City & Guilds Ltd would continue fee-based services, with roughly 60% of revenue tied to government schemes. In December, reports emerged of a £22m cost reduction effort and UK staff reductions at the new entity. The Guardian disclosed that Donnelly, who moved to the privatized firm, and Ismail received large bonuses post-sale, alongside salary increases of £100,000 for Donnelly to around £430,000 and £70,000 for Ismail to £300,000. Total pay for the top six executives more than tripled. PeopleCert noted no misconduct by the wider leadership team but will seek full repayment of their bonuses. Payments to the other 60 staff will stand, as they were not aware of or involved in the scheme. The Guardian coverage led the Charity Commission to launch an inquiry into the sale and executive bonuses. Donnelly and Ismail were briefly suspended while the internal review proceeded. The pair’s lawyer indicated plans to begin litigation and declined further comment.
