Rewarding hard work?

Executive pay is unfair, undeserved and out of control

The Guardian's front-page "special report" focuses on how pay for executives at Britain's top companies has leapt 10 per cent over the past year, despite their companies losing almost a third of their value in the wake of the worst financial crisis in living memory.

One corporate example, in particular, stood out to me:

The best-paid boardroom last year was that of Tullow Oil, a London-based oil exploration business, where 11 directors picked up a total of £59m. Most of their gains came from share options, as they cashed in on a share price that had soared along with the oil price. The directors made much more from their cheap share handouts than the rest of the 470-strong workforce were paid in the year.

So much for the argument that businessmen who rake in obscenly large salaries on the back of huge company profits deserve the money as a reward for their hard work. Why should the bosses at Tullow Oil -- including the chief executive and founder, Aidan Heavey, who took home an eye-watering £28.8m last year -- benefit so disproportionately from something as arbitary and uncontrollable as a record oil price? And why are we not taxing them more, in the middle of a recession, a time when politicians on all sides can't stop banging on about the need for spending cuts?

Politics of envy, I hear you ask? In my view, there's not enough envy around. Or outrage.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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As crime moves online, the police need the investment in technology to follow

Technology offers solutions, not just threats.

It’s perhaps inevitable that as the world becomes more digital, so does crime. This week Alison Saunders, director of public prosecutions, recognised that online crime is as serious as face-to-face crime. “Hate is hate,” Saunders wrote referring to internet abuse, and the police should protect people from it wherever they are. This will add demand to under-pressure police forces. And it is only the tip of the iceberg. 

Forty-seven per cent of crime involves an online element. Police recorded 30,000 instances of online stalking and harassment last year. People are 20 times more likely to be a victim of fraud than robbery, costing businesses an estimated £144bn a year. On a conservative estimate, 2,500 UK citizens use the anonymous dark web browser, Tor, for illegal purposes such as drug dealing, revenge porn and child sexual exploitation.

The police need new technology to meet demand, a Reform report published today finds. Some progress has been made in recent years. West Midlands Police uses an online portal for people to report incidents. Durham uses evidence-gathering software to collect social media information on suspects, and then instantly compile a report that can be shared with courts. Police have benefited from smartphones to share information, and body-worn cameras, which have reduced complaints against police by 93 per cent.

Yet, Theresa May’s 2016 remarks that police use “technology that lags woefully behind what they use as consumers” still stand. Officers interviewed for Reform’s research implored: “Give us the tools to do our job”.

Online evidence portals should be upgraded to accept CCTV footage. Apps should be developed to allow officers to learn about new digital threats, following the US army’s library of knowledge-sharing apps. Augmented-reality glasses are being used in the Netherlands to help officers identify evidence at digital crime scenes. Officers would save a trip back to the station if they could collect fingerprints on smartphones and statements on body-worn cameras.

New technology requires investment, but forces are reducing the resources put into IT as reserves have dried up. Durham plans to cut spend by 60 per cent between 2015-16 and 2019-20. The government should help fund equipment which can meet demand and return future productivity savings. If the Home Office invested the same as the Department of Health, another department pushing “transformative” technology, it would invest an extra £450m a year. This funding should come from administrative savings delivered through accelerating the Government’s automation agenda, which the think tank Reform has previously calculated would save Whitehall £2.6bn a year.

As crime moves online, police must follow. Saunders is right to point to the importance of meeting it. But technology offers solutions, not just threats. Installing the next generation of equipment will give police the tools to do their jobs, addressing online hate and more. 

Alexander Hitchcock is a senior researcher at reform