An investigation has revealed that top executives at City & Guilds, a prominent education charity, were awarded millions of pounds in bonuses despite concerns over the organization's financial management and governance. The bonuses, which totaled several million pounds, were paid to a small group of senior leaders, including former chief executive Kirstie Donnelly and her successor Abid Ismail.
Details of the Bonuses
According to documents obtained by The Guardian, Donnelly received a bonus of over £500,000 in 2024, while Ismail was awarded a package worth more than £1 million. The bonuses were linked to performance targets that critics argue were too easily met. The charity, which provides vocational qualifications, reported a surplus of £12 million in 2024, but its income fell by 8% to £230 million.
Governance Concerns
The investigation also highlights broader governance issues at City & Guilds. Board members were found to have approved the bonuses without adequate scrutiny, and some trustees reportedly raised concerns about the lack of transparency. The charity's chair, Sir John Armitt, defended the payouts, stating they were necessary to retain top talent in a competitive market.
However, critics argue that the bonuses are excessive for a charity that relies on public funding and fees from learners. The UK government has provided City & Guilds with millions in contracts, and the organization benefits from tax exemptions due to its charitable status.
Reactions and Calls for Reform
The revelations have sparked outrage among education unions and campaigners. The National Education Union called for an independent inquiry into the charity's pay practices, while the Charity Commission said it was monitoring the situation. City & Guilds has announced a review of its executive compensation policies, but critics say this is insufficient.
In a statement, a spokesperson for City & Guilds said: “We are committed to responsible governance and have already taken steps to strengthen our processes. The bonuses were awarded based on rigorous performance metrics and were approved by the board.”
Impact on the Sector
The controversy comes at a time when many charities are facing increased scrutiny over executive pay. The case has reignited debates about the balance between rewarding leadership and ensuring that funds are used for charitable purposes. Some experts argue that charities should cap executive pay relative to the lowest-paid workers, while others say market forces should dictate compensation.
As the investigation continues, City & Guilds faces pressure to disclose more details about its bonus structure and to ensure that future payouts are more closely aligned with the organization's mission.
