City & Guilds executives awarded millions in bonuses without authorisation, investigation finds
8 reported
An internal investigation into the £166m sale of vocational charity City & Guilds found that its two most senior executives awarded themselves nearly £3m in bonuses without authorisation from or knowledge of their superiors. The report into former chief executive Kirstie Donnelly and finance chief Abid Ismail states they directly authorised and paid bonuses to themselves, with a further £2m paid to other senior executives and 60 more junior colleagues. PeopleCert, the private company that acquired City & Guilds in October, said the bonuses and salary hikes were in direct breach of the executives’ duties and caused significant harm to the organisation’s reputation. PeopleCert intends to take all action available to recover the amounts from Donnelly (£1.7m) and Ismail (£1.2m) and will make appropriate referrals to relevant authorities. The Guardian first reported on the bonuses in December, prompting the Charity Commission to open a statutory inquiry into the sale and bonuses. Donnelly and Ismail were suspended for a short period as PeopleCert commissioned its investigation, and their lawyer has stated they will be commencing litigation against City & Guilds Ltd.
What’s reported
The two most senior executives at City & Guilds awarded themselves nearly £3m in bonuses without authorisation from or knowledge of their superiors.
The internal investigation found Donnelly and Ismail directly authorised and paid bonuses to themselves.
A further £2m was paid to other senior executives and 60 more junior colleagues.
PeopleCert said the bonuses and salary hikes were in direct breach of the executives’ duties and caused significant harm to the organisation’s reputation.
PeopleCert intends to recover £1.7m from Donnelly and £1.2m from Ismail and will make referrals to relevant authorities.
The Guardian’s December reporting prompted the Charity Commission to open a statutory inquiry into the sale and bonuses.
Donnelly and Ismail were suspended for a short period after the investigation was commissioned.
Their lawyer said they will be commencing litigation against City & Guilds Ltd.
Key figures
Kirstie Donnelly, former chief executive of City & Guilds
Abid Ismail, finance chief of City & Guilds
PeopleCert, the private company that acquired City & Guilds
Sources: The Guardian
