Charity watchdog opens inquiry into City & Guilds' £180m sale, amid concerns over executive bonuses.
The Charity Commission has launched a statutory inquiry into the sale of City & Guilds' training and awards business to private company PeopleCert, following reports that executives received multi-million pound bonuses as part of the deal.
The investigation will examine concerns raised by public reports about the sale and bonuses awarded to top executives, including chief executive Kirstie Donnelly and finance director Abid Ismail. The inquiry also aims to review information provided to the commission regarding the sale and decisions made by City & Guilds' trustees.
As part of the deal, PeopleCert acquired the training business for £180-£200m, with City & Guilds reportedly receiving a cash windfall that would be used to support its charitable objectives. However, critics have raised concerns about the scale of the executive bonuses and the impact on jobs, as the company has embarked on a £22m cost-cutting drive and is shrinking its UK workforce.
Donnelly is understood to have received a £1.7m bonus, while Ismail's payment is believed to be around £1.2m. Both executives also saw significant increases in their salaries - Donnelly's salary now stands at around £430,000, up from £330,000, and Ismail's salary increased by 30%, rising to about £300,000.
The Charity Commission has confirmed that its inquiry will consider "all relevant information" and may extend the scope of the investigation if additional regulatory issues emerge. The commission had previously been aware of the proposed sale but did not require regulatory consent.
City & Guilds' founders had intended the charity-owned business to provide vocational training and skills development, with a focus on supporting disadvantaged groups. The organisation claims its expertise is still being used by about 1.1 million people annually.
The Charity Commission has launched a statutory inquiry into the sale of City & Guilds' training and awards business to private company PeopleCert, following reports that executives received multi-million pound bonuses as part of the deal.
The investigation will examine concerns raised by public reports about the sale and bonuses awarded to top executives, including chief executive Kirstie Donnelly and finance director Abid Ismail. The inquiry also aims to review information provided to the commission regarding the sale and decisions made by City & Guilds' trustees.
As part of the deal, PeopleCert acquired the training business for £180-£200m, with City & Guilds reportedly receiving a cash windfall that would be used to support its charitable objectives. However, critics have raised concerns about the scale of the executive bonuses and the impact on jobs, as the company has embarked on a £22m cost-cutting drive and is shrinking its UK workforce.
Donnelly is understood to have received a £1.7m bonus, while Ismail's payment is believed to be around £1.2m. Both executives also saw significant increases in their salaries - Donnelly's salary now stands at around £430,000, up from £330,000, and Ismail's salary increased by 30%, rising to about £300,000.
The Charity Commission has confirmed that its inquiry will consider "all relevant information" and may extend the scope of the investigation if additional regulatory issues emerge. The commission had previously been aware of the proposed sale but did not require regulatory consent.
City & Guilds' founders had intended the charity-owned business to provide vocational training and skills development, with a focus on supporting disadvantaged groups. The organisation claims its expertise is still being used by about 1.1 million people annually.
This whole thing just smells like something's not quite right. £180m for PeopleCert? That's a huge chunk of change and it's hard to see how that directly benefits the charity itself. And those executive bonuses, £1.7m and £1.2m? Come on, can't they just put that towards helping the people City & Guilds originally promised to help? It feels like the priorities are all wrong here... 
... City & Guilds is like, literally supposed to be helping people get trained for jobs, and now they're selling it off for £180-£200m? That's crazy 
. The Charity Commission needs to really dig into this and figure out if City & Guilds is still serving the public interest or not 
Omg this is so concerning!!! 
The founders' intentions were so pure and now it's like their legacy is just being used to line the pockets of a few people. 
What's wrong with the charity commission? Don't they have a job to do? 
They should be all over this... I hope they're not just going through the motions here. And what about those 1.1 million people who are supposed to benefit from City & Guilds' training and awards business? Are they even getting any of that money now that it's gone private?