So four Google executives are paying themselves $15m in bonuses, despite the company's bad behaviour...

But we should all calm down. This isn't as bad as it seems.

Arguably, the two business metrics that capture most public attention in the post-2008 media climate are the value of fines levied for bad behaviour, and the bonuses paid to top executives.

The cathartic element in seeing a big company charged for wrongdoing, and the commensurate outrage of sums on a similar scale being offered to individuals as a reward for business conducted during the same period, are always bound to resonate in a climate where people feel they have been impoverished by greed on an epic scale.

So how has the world reacted to fine and bonus figures released by Google, as the web giant reported $15 million in bonuses paid to four executives, and $7m in fines to 38 US states over invasion of privacy through Google Street View?

Understandably, commentators have been quick to jump on the latter. A $7m fine is hilariously small for a company with a market cap of $274bn and latest annual profits of $2.89bn: a typo in the first draft of this article had the fine set at $7, which it might as well have been, for all the difference it makes.

The fine is far more interesting in terms of reputation than financial impact, especially when associated clauses are considered. As well as binning the contested Street View data, Google has been required to run a ten year employee training program on privacy, and launch a public service advertising campaign on securing wireless networks.

If Microsoft had been considering canning its “Scroogled” smear campaign on Google’s privacy attitudes, as some speculated earlier this month, it is likely to have reconsidered in light of the Street View fines.

But even though Google’s bonuses more than double what it has been fined, I am yet to find any censure online for the $15m payout offered to bosses. After all, even though the smallest bonus – chief business officer Nikesh Arora’s $2.8m – is dream money for most of us disgruntled mortals, it hardly seems berserk against the backdrop of such gargantuan revenues and profits.

This is certainly not news when compared with RBS, a company with a market cap of $33bn compared to Google’s $274, handing over more than $600m in payouts to executives at the same time as being fined $400m over the LIBOR scandal - in itself arguably a drop in the ocean.

If anything, the fact that Google co-founders Larry Page and Sergey Brin are not to receive bonuses at all seems positively saintly, and goes some way to negating any reputational damage over the Street View incident.

The reason for this, however, is that both men are already worth over $20bn, making even RBS executives look like the rest of us by comparison.  With figures like that floating around, I’m surprised anyone reported on Google’s bonus payments and snooping fines at all.

Photograph: Getty Images

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

Getty
Show Hide image

Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.