Charity watchdog launches investigation into City & Guilds' sale of business arm after controversy over executive bonuses.
The Charity Commission has initiated a statutory inquiry into the sale of City & Guilds' qualification awards business to private company PeopleCert, following revelations about massive executive bonuses and cost-cutting measures at the newly privatized business.
As reported by The Guardian last month, top executives at City & Guilds were handed out significant pay packets worth millions, with chief executive Kirstie Donnelly receiving a £1.7m bonus and finance director Abid Ismail receiving £1.2m, alongside a combined salary increase of over 30% for both.
However, concerns have also been raised about the privatisation process itself, including a reported £22m cost-cutting drive that has resulted in significant job losses at City & Guilds Ltd. The charity's own website appears to have removed details about this programme after The Guardian published its findings.
The Charity Commission's inquiry will examine several key issues, including "concerns raised in public reporting" related to the sale and bonuses awarded to executives, as well as the decision-making process of City & Guilds' trustees regarding the sale. It will also review information provided by the charity about the sale and assess whether it was in line with charitable objectives.
While City & Guilds Ltd has maintained that executive bonuses are a matter for the private company, the Charity Commission warned that its inquiry may extend if additional regulatory issues emerge. The watchdog had previously been informed of the proposed sale but did not require regulatory consent due to assurances from the charity's trustees about their decision-making process.
The institution itself has a rich history dating back to 1878 and offers qualifications and apprenticeships to over 1.1 million people annually, with notable alumni including celebrities like Jamie Oliver, Alan Titchmarsh, and Gordon Ramsay.
The Charity Commission has initiated a statutory inquiry into the sale of City & Guilds' qualification awards business to private company PeopleCert, following revelations about massive executive bonuses and cost-cutting measures at the newly privatized business.
As reported by The Guardian last month, top executives at City & Guilds were handed out significant pay packets worth millions, with chief executive Kirstie Donnelly receiving a £1.7m bonus and finance director Abid Ismail receiving £1.2m, alongside a combined salary increase of over 30% for both.
However, concerns have also been raised about the privatisation process itself, including a reported £22m cost-cutting drive that has resulted in significant job losses at City & Guilds Ltd. The charity's own website appears to have removed details about this programme after The Guardian published its findings.
The Charity Commission's inquiry will examine several key issues, including "concerns raised in public reporting" related to the sale and bonuses awarded to executives, as well as the decision-making process of City & Guilds' trustees regarding the sale. It will also review information provided by the charity about the sale and assess whether it was in line with charitable objectives.
While City & Guilds Ltd has maintained that executive bonuses are a matter for the private company, the Charity Commission warned that its inquiry may extend if additional regulatory issues emerge. The watchdog had previously been informed of the proposed sale but did not require regulatory consent due to assurances from the charity's trustees about their decision-making process.
The institution itself has a rich history dating back to 1878 and offers qualifications and apprenticeships to over 1.1 million people annually, with notable alumni including celebrities like Jamie Oliver, Alan Titchmarsh, and Gordon Ramsay.
I'm thinking... so City & Guilds is a charity right? 
And they just sold off their business arm for, like, millions of pounds... but the top execs were still getting paid big bucks 
. It's not exactly fair, you know? They're supposed to be using that money for education and stuff, not lining the pockets of themselves 
. And then they try to brush it off by saying it's a private company now, so they can't be bothered with all these regulations 
... I don't think so! 
And let's be real, a £22m cost-cutting drive resulting in job losses? Not cool 
What were the execs thinking?! And what's up with their website removing details about the program? Like, transparency is super important for charities 
They need to get it together and make sure they're following proper procedures. I hope the Charity Commission digs deep into this and gets some answers... we deserve to know what really went down 
. It's like they're trying to cover their tracks! 
I'm not saying there's definitely a conspiracy, but... actually, yes, I am 
.
. Million pound bonuses for top execs? That's not exactly charity work if you ask me 
. Guess we'll just have to wait and see how this whole investigation plays out 
.
they're just giving out 1.7m+ in bonuses while cutting 100s of jobs i mean what about the ppl who actually matter here? the fact that they removed info from their website about the cost-cutting drive is just shady 
! I mean, come on, £22m cost-cutting drive that's resulted in job losses? That's not okay at all 
- all this corporate greed is super off-putting 
. When did charity become about fat bonuses? 