The City & Guilds Foundation estimates that it received £166m in net proceeds from the controversial sale of its commercial arm to PeopleCert last year.
Recently published documents show the charity’s former chief executive Kirstie Donnelly was paid £526,000 in her final year before the sale, up from £448,000 the year before, including a bonus estimate of £126,000.
Overall remuneration for the charity’s executive leadership team, including Donnelly, increased by over a fifth to £2.22m in the year to August 2025, its accounts show.
“The divestment of the group’s commercial activities will have material impacts on the group’s and institute’s future activities and its financial statements in the next financial year as its income and expenditure related to commercial activities will cease from 1 November 2025 and assets and liabilities related to those activities will be disposed,” the accounts read.
“Estimated net proceeds for the disposals, after selling costs, was £166m.”
The Charity Commission opened a statutory inquiry earlier this month over concerns related to the sale and bonuses awarded to executives.
Following the inquiry opening, PeopleCert told the Guardian that Donnelly and the charity’s former chief financial officer Abid Ismail had both been placed on leave as the company conducted its own investigation.
New chair sought
The City & Guilds Foundation is currently advertising for a new chair with current incumbent Ann Limb set to leave tomorrow to become a Labour life peer.
“This is a pivotal period for the foundation, and whilst successful streams of activity already exist, we are ready for the next stage,” its advert reads.
“Our future strategic framework is currently being shaped by trustees and interim CEO Mike Adamson.”
Prior to the sale in October last year, the charity operated under the name City & Guilds of London Institute (CGLI).
All of CGLI’s awarding, assessment and training businesses have transferred to PeopleCert, which will run the operations under the name City & Guilds Limited.
Some 1,400 staff were transferred out of the charity – which now operates under the City & Guilds Foundation name – leaving around 10 to 15 employees.
The charity said in October that it expected to have £180 to £200m in assets post-sale and that it would largely rely on the annual earnings from its reserves, with plans to form a strategy on its future activities.
Commenting on the 2024-25 accounts, a spokesperson for the charity said: “The report reflects a year of operational pressure across the sector.
“Despite these challenges, CGLI continued to deliver its core services, maintain compliance with regulatory standards, and manage resources responsibly, securing long-term stability and continuity for stakeholders.”
