Dan Gillmor
Whitman and Fiorina: Silicon Valley’s shabby side
The top California Republican candidates are a reminder of the tech industry's less-admirable values
Meg Whitman and Carly Fiorina, who won their primary races to become California’s Republican candidates for governor and U.S. senator, came to great public visibility — and wealth — in the technology world. They represent elements of a Silicon Valley culture that was most evident during the bubble years of the late 1990s.
The culture had evolved by then. Getting rich was always a motivation for people in the tech industry, but so was innovation and competition that could be fierce yet fair.
Whitman, at least, knew how to run a company. She was a strong leader at eBay, a company that innovated in many areas as it became by far the largest service of its kind.
Like some other big tech companies of the era, however, eBay also resorted to over-the-top tactics to stifle competition. In 2000, it persuaded a federal judge in California that Bidder’s Edge, a company that offered price comparisons across multiple auction sites, was “trespassing” on its servers — a ruling that threatened “the very foundations of the Web,” according to some of America’s top cyber-law experts. (An appeal was dropped in a settlement, and a California Supreme Court decision in a different case appeared to contradict the district judge’s ruling.)
But my chief recollection of Whitman was her participation in the culture of greed that overcame Silicon Valley. While she was CEO of eBay, her company sent lots of business to Goldman Sachs. Goldman put her on its board of directors, “paying her an estimated $475,000 for little more than a year of part-time service” and — in a practice known as “spinning” — it gave her “insider access to the initial public offerings of hot stocks worth millions,” according to California Watch’s recent round-up of the Whitman-Goldman ties. (Whitman has denied any connection between her eBay role and Goldman’s offering her IPO stocks at insider prices.)
Now, I agree with Whitman and her defenders who say it’s absurd to blame her for Wall Street’s hugely cynical, and in some cases probably illegal, manipulations during the housing bubble of the last decade; she was on Goldman’s board for only 15 months, after all, and that stint ended in 2002. It’s all the other stuff of that earlier era– especially the spinning — that speaks to her personal values.
One of her defenses has been that, well, the spinning didn’t bring her much money (about $1.8 million, which later went back to shareholders in a lawsuit settlement) in the context of the enormous personal wealth her eBay holdings had provided, as if it’s OK to do something unethical as long as the relative numbers are small. And in April, she told the AP that she wouldn’t do it again, but called the practice part of the “normal course of business” of the era.
That’s the point: Spinning was normal for all too many of Silicon Valley’s hotshots back then. It was also cynical and outrageous, part of the dismal value system of the time that went, roughly, “What’s acceptable is what you can get away with.”
Fiorina, for her part, was part of an ascendant valley culture of a different kind. She wasn’t as terrible a CEO of Hewlett-Packard as her critics maintained, but her pay certainly dwarfed her performance. The board had ample reason to force her out in 2005, and her platinum parachute of more than $20 million made more than a few admirers of the old HP gag even though it had become (and remains) a too-standard practice in corporate America.
For those who remembered the old HP, Fiorina’s tenure was marked most dismally by her dismantling of something core to the valley. This was a vision and practice called the “HP Way” — a corporate culture created by the founders, William Hewlett and David Packard, who believed and acted as though employees and communities were as important as shareholders and executives. More than a few of the companies that rose in the valley in the wake of HP’s pathbreaking success held some or all of these notions as foundations, too.
Fiorina didn’t start the process of ending the HP Way, but she pretty much finished it. Even if she’d been a good CEO in other ways, that part of her tenure will remain her most lasting contribution — and not a positive one.
A longtime participant in the tech and media worlds, Dan Gillmor is director of the Knight Center for Digital Media Entrepreneurship at Arizona State University’s Walter Cronkite School of Journalism & Mass Communication. Follow Dan on Twitter. More about Dan here.
Apple’s control-freakery eclipses iPhone advances
Other, more open systems will catch up soon enough. Meanwhile, digital networks can't handle all the cool features
Apple CEO Steve Jobs holds the new iPhone 4 at the Apple Worldwide Developers Conference in San Francisco on Monday. It does look like a nice piece of gear, the new iPhone. The chances I’ll buy one: zero, at least in the near term.
Like Salon colleague Andrew Leonard, I’ve been watching from outside the Apple World Wide Developers Conference, feeding on live blogging, tweets and other coverage of Steve Jobs’ keynote this morning. (The best way to do so, by my reckoning, was following Gizmodo — you know, the site famously under investigation for having bought a pre-production unit of the device from someone who said he found it in a bar — which aggregated everyone else’s live coverage after Apple showed who’s boss by not issuing a press pass.)
Continue Reading CloseIf social media had been widespread on 9/11
We would remember the terrorist attacks differently if we communicated then the way we do now
Two beams of light represent the former Twin Towers of the World Trade Center during the 2004 memorial of the Sept. 11, 2001, attacks. (Updated)
The Tweet scrolled by yesterday almost before I spotted it:
<em>@ruthannharnisch NYT’s Nick Bilton wonders what we would have learned from the inside of Sept 11 2001 events if social media had been widespread. #pdf10
Unpacking: Twitter user Ruth Ann Harnisch, attending the Personal Democracy Forum in New York, was quoting the New York Times’ Nick Bilton, lead writer of the newspaper’s Bits Blog. In a panel discussion he’d speculated, if I understood the Tweet correctly, about how we’d remember the Sept. 11 attacks if social media had been more ubiquitous back then.
Continue Reading CloseFacebook founder sweats it out
Zuckerberg's evasions about FB's evolving privacy policies raise new questions about the company's intentions
Facebook CEO Mark Zuckerberg takes a question during a news conference at Facebook headquarters in Palo Alto, California May 26, 2010. REUTERS/Robert Galbraith (UNITED STATES - Tags: SCI TECH BUSINESS)(Credit: © Robert Galbraith / Reuters) Some of the tech-world buzz today is about Facebook founder and CEO Mark Zuckerberg’s astonishingly poor showing onstage at this week’s Wall Street Journal conference, All Things Digital. Make no mistake: His fumbling, rapid-fire, sweat-drenched appearance was probably the most cringe-inducing at the D gathering since Jerry Yang and Sue Decker, then CEO and president of Yahoo, spent many minutes several years ago failing to explain what business Yahoo was in.
Continue Reading CloseWhat you can expect from my blog
Media and technology coverage that looks beyond the gloom to ways we can create better, more trustworthy content
I’ve been a fan of Salon since the day it started, and a paying subscriber as long as the company has offered that option. If you visit this site often, you already know why.
So I’m delighted to be bringing some of my blogging here. In coming months I’ll be writing about topics I know well, such as media and technology — and especially the growing intersection of the two fields.
Thanks to the work of people in Silicon Valley and its offshoots around the world, media have become significantly more democratized in recent years. Democratization, in this sense, is about participation and access: Increasingly, we can all create media, and with digital networks we can find what people create.
Continue Reading CloseSteve Jobs defends his PG-rated walled garden
At the All Things Digital conference, the Apple CEO acts like closed-system critics are cheaters or porn peddlers
More than a decade ago, when Microsoft reigned supreme in the technology world and Apple seemed to be on its last legs, a fellow technology journalist and I pondered an alternate universe in which Apple and Steve Jobs were in the driver’s seat, not Microsoft and Bill Gates. We agreed: Given Jobs’ personality, the world would not be better off.
A few days ago, when Apple’s market capitalization — the value of all its shares — surpassed Microsoft’s, I thought back to that years-ago conversation with a mix of amazement and angst. While Apple isn’t likely to have the same level of domination that Microsoft achieved, Jobs and company are clearly aiming high. Their strategy for the next generation of personal technology is to control the ecosystem at every level, and to rake off a piece of all the financial transactions taking place there.
Continue Reading ClosePage 17 of 17 in Dan Gillmor