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Charity's £166m Sale Sparks Executive Pay Scandal
19 Apr
Summary
- Charity Commission investigates £166m sale and executive bonuses.
- Vocational training brand sale led to significant executive pay hikes.
- Price increases for affiliated training courses caused concern.
The sale of City & Guilds' training and accreditations business for £166m in October 2025 has become the subject of a Charity Commission inquiry.
This inquiry focuses on the sale itself and the large bonuses awarded to executives, which followed shortly after the transaction. The deal saw the vocational training brand transition to private ownership under PeopleCert, prompting scrutiny over potential shifts in priorities from education to profit.
Elecectrician Charlie Butler noted significant fee increases for affiliated courses, from £2,000 to £5,000 annually, and per-person charges rising from £18 to £60. These hikes occurred as the business was sold, with executives receiving substantial payouts.
Key figures like chief executive Kirstie Donnelly and finance director Abid Ismail reportedly received over £1.7m and £1.2m respectively, alongside considerable salary increases. These payments occurred despite the charity's accounts showing a relatively stable financial position prior to the sale.
Further concerns have emerged regarding the process of the sale, with allegations that alternative options to a private sale were not fully explored by the trustees. The Charity Commission's ongoing investigation seeks to address these matters, alongside an internal probe by PeopleCert.
