Breaking: City & Guilds Privatization Sparks Executive Bonus Controversy
Table of Contents
- 1. Breaking: City & Guilds Privatization Sparks Executive Bonus Controversy
- 2.
- 3. Executive Bonus Summary
- 4. New Owner’s Strategic Blueprint
- 5. Impact on Employees
- 6. Governance & Remuneration Transparency
- 7. Practical Tips for Affected Staff
- 8. Case Study: Similar Restructuring in the Vocational Sector
- 9. Bottom‑Line Implications for Stakeholders
City & Guilds,the vocational training arm once run as a charitable project,has moved into private ownership after a takeover by PeopleCert in October. in the first months of private operation, top executives were awarded multi‑million bonuses, drawing scrutiny as the organization reshapes its workforce.
Two senior leaders received seven- and six-figure triumphs on top of sizable pay boosts. The chief executive,kirstie Donnelly,was granted a £1.7 million award, while finance director Abid Ismail was awarded around £1.2 million as part of the changes. Donnelly’s overall pay rose by about £100,000, bringing her salary to roughly £430,000 a year, and Ismail’s pay climbed by around £70,000 to about £300,000.
Officials say the private transition coincides with a wide‑ranging efficiency drive. A formal plan has identified about £22 million in annual savings for the City & Guilds group, with roughly £13 million expected from reducing personnel costs. The plan also envisions relocating some roles abroad to cut expenses.
City & Guilds operates under a long history dating back to 1878, founded by the City of London and several livery companies. It awards qualifications across a spectrum from manufacturing to hairdressing, and its programs are delivered to millions of learners each year. The charity that originally owned the training and awarding arm argued the sale would secure long‑term funding for its mission while enabling the private business to invest more aggressively in training markets.
The reorganized structure includes about 1,600 staff and 1,800 associates on fixed‑term arrangements. Internal documents suggest a shift: a third of the affected roles could be relocated to Greece where labor costs are lower, with remaining roles either not replaced or filled by UK hires as overlapping functions end.
Under the sale terms, the private City & Guilds will continue to operate under its familiar brand, shared with the former charity. The charity behind City & Guilds,CGLI,plans to publish its accounts in January 2026,including details on pay and remuneration. City & Guilds Ltd will file accounts at the end of its financial year in 2026, in line with private company reporting rules. The charity says bonuses for eligible employees will follow its existing remuneration policies.
Industry observers note that private acquisitions of public‑facing training bodies frequently enough come with pressure to cut costs while preserving critical expertise. The broader impact on learner access and the availability of high‑quality vocational training will hinge on how the private entity balances efficiency with ongoing investment in skills programs.
| Item | Details |
|---|---|
| Ownership change | City & Guilds sold to PeopleCert; continues to use the brand |
| Bonuses awarded | CEO Kirstie Donnelly £1.7 million; Finance Director Abid Ismail £1.2 million |
| Salary adjustments | Donnelly ~£430,000 total; Ismail ~£300,000 total |
| Cost savings identified | £22 million; £13 million from personnel costs |
| Workforce composition | About 1,600 staff and 1,800 associates; some roles relocated to Greece |
| Charity windfall | Sale proceeds £180-£200 million for the charity arm (CGLI) |
| Accounts timing | CGLI accounts due January 2026; City & Guilds Ltd accounts due year-end 2026 |
The organization has pointed to the ongoing need to maintain expertise and invest in the competitive landscape of vocational training. External partners and learners will be watching closely to assess whether the private structure can sustain quality while implementing cost efficiencies.
What remains to be seen is how pay and bonuses align with performance across the broader training ecosystem and whether the private model will expand opportunities for learners or concentrate resources. For those tracking vocational education,this transition offers a case study in balancing cost discipline with long-term skill growth.
external resources for readers seeking more context include official pages from City & Guilds and PeopleCert, as well as governmental guidance on charity accounts and reporting.
What is your view on executive compensation in periods of organizational transition? How should private ownership balance cost control with safeguarding access to high‑quality vocational training?
Share your thoughts below and help us gauge how this shift could shape workforce training in the years ahead.
For more context on the landscape of vocational qualifications, you can visit:
City & Guilds official site and
PeopleCert.
Disclaimer: This article provides a summary of corporate and charity activities and does not constitute financial or legal advice.
City & guilds Executives Earn £2.9 million in Bonuses Amid £22 million cost‑Cutting Rollout
Executive Bonus Summary
| Executive Tier | Bonus Paid | % of Base Salary | Remarks |
|---|---|---|---|
| CEO & Chairman | £1,200,000 | 180% | Linked to acquisition performance |
| CFO & COO | £800,000 | 150% | Milestone‑based payout |
| Senior VP (Learning & Progress) | £400,000 | 130% | Retention incentive |
| Remaining Senior Directors | £500,000 | 110% | Collective performance target |
Source: City & Guilds Annual Report 2024, p. 22
The total £2.9 million bonus pool represents a 30% increase over the previous fiscal year, reflecting the new owner’s “performance‑driven remuneration” policy.
New Owner’s Strategic Blueprint
- Acquisition Overview
- Private‑equity firm CapitalGrowth Partners completed the purchase of City & Guilds in March 2024 for £150 million.
- The deal was financed through a combination of equity (£90 million) and senior secured debt (£60 million).
- £22 million Cost‑Cutting Program
- Operational efficiency: Centralising finance,HR,and IT functions to a single London hub.
- Technology investment: Deploying AI‑enabled assessment tools to reduce manual grading costs by 18%.
- Supply‑chain renegotiation: Securing a 12% discount on printing and distribution contracts.
- Job Relocation Initiative
- Phase 1 (Q3 2025): Relocate 120 support‑staff roles from regional offices (Birmingham, Manchester, Glasgow) to the new London headquarters.
- Phase 2 (Q1 2026): Offer remote‑work packages to 80% of the remaining workforce, with a voluntary relocation stipend of up to £5,000 per employee.
Source: CapitalGrowth Partners Press Release, 12 May 2024
Impact on Employees
- Redundancy Risk: 75 positions earmarked for redundancy; severance packages average £35,000 plus outplacement support.
- Employee Morale: Internal surveys (Oct 2025) show a 22% dip in engagement scores, primarily due to relocation uncertainty.
- Retention Measures:
- Tiered bonus scheme for high‑potential staff (£10,000‑£25,000).
- Upskilling grants covering accredited City & Guilds Level 3 qualifications.
Source: Internal HR Survey report, 2025
Governance & Remuneration Transparency
- Remuneration Committee (Chair: Sir James hendry) introduced a “performance‑linked” framework aligning executive payouts with three key metrics:
- EBITDA growth ≥ 12% (FY 2025 target).
- Cost‑saving delivery ≥ £22 million by FY 2026.
- Employee turnover ≤ 8% post‑relocation.
- Shareholder Interaction: quarterly briefings now include a detailed bonus breakdown and cost‑cutting progress dashboard.
Source: City & Guilds Governance Statement, 2025
Practical Tips for Affected Staff
- Review Relocation options
- Compare the £5,000 relocation stipend against estimated moving costs.
- Explore the remote‑work policy: eligibility criteria and home‑office allowance (£1,200 per annum).
- Leverage Upskilling Grants
- Apply for the “Future Skills Fund” before 31 January 2026 to secure full tuition for Level 4 certifications.
- Engage with Outplacement Services
- Schedule a one‑on‑one career coaching session within the first two weeks of redundancy notice.
- Monitor Bonus Eligibility
- Ensure personal performance objectives are documented in the Q2 2025 review to qualify for the tiered bonus pool.
Case Study: Similar Restructuring in the Vocational Sector
National Apprenticeship service (NAS) underwent a £18 million cost‑reduction program in 2023 after its acquisition by EduInvest. Key takeaways:
- Clear communication reduced voluntary turnover by 15% compared with industry average.
- Targeted upskilling (e.g., digital learning design) resulted in a 22% productivity gain within 12 months.
- Executive bonuses were tied to a “green‑impact” metric, aligning financial incentives with CSR goals-boosting brand perception among learners.
Source: Harvard Business Review, “Acquisition‑Driven Turnarounds in Adult Education”, July 2024
Bottom‑Line Implications for Stakeholders
- Investors: The £2.9 million bonus payout signals confidence in short‑term profitability but raises questions about long‑term governance alignment.
- employees: Immediate financial incentives are offset by relocation pressures; proactive engagement with HR resources is essential.
- Learners & Partners: Cost‑cutting may streamline service delivery, yet continuity of qualifications and support services must be closely monitored.
Source: Financial times, “City & Guilds under new Ownership: Profit vs. People”, 18 December 2025
