The charities watchdog is “engaging actively” with the City & Guilds Foundation following reports that two executives were in line for million-pound bonuses after its commercial awarding body was sold off.
It comes as the foundation’s chair, Dame Ann Limb, has confirmed plans to step down from her role early after being nominated for a peerage. Limb has come under fire in recent weeks after admitting to misleading claims about her educational achievements.
Concern has grown about the charity’s trustees’ decision to sell City & Guilds’ commercial awarding organisation and skills training activities to Greek-owned global certification company PeopleCert in October 2025.
According to a report by The Guardian, chief executive Kirstie Donnelly has been awarded a £1.7 million bonus alongside a £100,000 salary increase to £430,000, while finance director Abid Ismail reportedly received a £1.2 million bonus and 30 per cent salary increase to £300,000 per year.
City & Guilds Limited has not disputed the figures and declined to comment on whether the bonuses were known to the pair ahead of the sale when approached by FE Week. A spokesperson said: “The accounts for City & Guilds Ltd will be published at year end in 2026, as required for private limited companies. Any awards to employees are a matter for City & Guilds Ltd and are guided by commercial practice to ensure talent and expertise is retained.”
A spokesperson for the foundation did however confirm that trustees were “not involved in any pre or post-deal conversations regarding remuneration matters for City & Guilds Limited executives that would apply after the sale”.
The spokesperson added: “This is a matter for the new City & Guilds Ltd owners. City and Guilds of London Institute (CGLI) will publish its accounts as normal in January 2026 and details of pay and renumeration up to the sale will be reported in the accounts in the usual way.
“Bonuses for eligible employees reflecting performance in 2025 are payable in line with CGLI’s remuneration policy.
“No payments outside CGLI’s existing bonus schemes have been paid.”
Donnelly’s bonuses have ranged between £190,000 and £67,000 in each of the last four years, according to City & Guilds’ financial statements.
Regulator wants ‘more information’
The Charity Commission this week confirmed that in response to “recent media reports” about City & Guilds’ sale it is now “engaging actively with the charity to obtain more information to assess and next steps for us as a regulator”.
A spokesperson for the commission told FE Week it was aware of plans to sell City & Guilds to PeopleCert and received assurances about trustees’ decision making.
Selling the charity’s business was a lawful decision for the charity’s trustees and formal permission for the sale was neither required nor provided by the commission, the spokesperson added.
Neil Bates, who sits on City and Guilds’ advisory council, said: “I am concerned about the bonuses that appear to have been paid to Kirstie and the finance director and about the process of governance that was followed or not followed. Both, I think, are deeply concerning.
“What I really want to happen is for there to be full and open disclosure of the circumstances and details of how the decision was arrived at to sell these parts of the business.
“What process was followed to ensure that the charity got best value for the disposal of those assets and that nobody benefitted personally from sale of those assets?”
Charity chair steps down
City & Guilds Foundation chair Dame Ann Limb also this week confirmed that she plans to step down from the charity this year. She became chair in 2021 and her current term was due to end in 2027.
The resignation is understood to have been prompted by Limb’s appointment to the House of Lords last month and was decided in early December.
However, it also comes amid controversy around her incorrect claim to have had a doctorate from the University of Liverpool.
Mike Adamson, newly appointed interim CEO of the foundation, said recruitment for a new chair and permanent CEO will begin “in the next two weeks.”
Sale ‘secured the long-term future’
At the time of the sale of the 150-year-old charity’s qualification and training business, Limb and Donnelly argued it was necessary to “secure its future” and ensure the operation “thrives for another century and beyond”.
Following the sale, a document published by City & Guilds’ new owner PeopleCert suggested the company plans to cut £19 million from its permanent and short-term staff costs in the next 24 months by making vacant roles redundant or relocating them to Greece. The document was later removed from PeopleCert’s website.
The charity, officially known as The City & Guilds of London Institute, operates as City & Guilds Foundation, while the now privately owned business now trades as City & Guilds Limited.
The foundation plans to continue its charitable functions as an “innovative social investor and change maker” with the proceeds of the sale, which include up to £200 million in “gross assets” and provision of office space for a period of five years.
In response to what it describes as “a number of inaccurate claims” about the sale of City & Guilds, the foundation released a detailed statement on January 2, saying it decided to sell the business amid “instability of political cycles, policy reform and competitive pressures”.
The trustees said they considered five options to protect the future of the institution.
“These ranged from doing nothing, to merger, borrowing funds, and sale,” a spokesperson said.
“After thorough consideration over a 30-month period, supported by extensive input from highly respected commercial and legal advisers, the final decision was to sell the charity’s awarding and training businesses.
“This approach secured the long-term future of the charity while also providing the necessary investment and capabilities for the commercial training and awarding business, which required significant capital to remain competitive in a highly regulated market that is increasingly reliant on technology infrastructure to meet learner demand.”
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