It was huge news when Steve Jobs returned to Apple, the company he helped start but had since lost its “magic.” When he stood on stage at Macworld in January 2007, Wall Street Journal reporter Jim Carlton wrote, “The return of Elvis would not have provoked a bigger sensation.”
Even though Jobs insisted he was an “advisor” at the time, those in and around Apple knew he was really in control. Amelio depended on Jobs for the company’s vision moving forward. But on his first Thursday back at Apple, Jobs used this newfound leverage to his advantage: He called a board meeting and demanded the company reprice its stock options by lowering the exercise price to make them valuable again. It was legal at the time, but not considered good business, at least ethically. But even after the board of directors balked at the idea, saying a study would take at least two months, Jobs fired back.
“You brought me here to fix this thing, and people are the key… Guys, if you don’t want to do this, I’m not coming back on Monday. Because I’ve got thousands of key decisions to make that are far more difficult than this, and if you can’t throw your support behind this kind of decision, I will fail. So if you can’t do this, I”m out of here, and you can blame it on me, you can say, ‘Steve wasn’t up for the job.’”
The board gave Jobs what he wanted. But Jobs didn’t stop there: The next day, he demanded all the board members resign, “or else I’m going to resign and not come back on Monday.” He said all the board members had to go, except for one Ed Woolard, and that’s exactly what happened.