Steve Jobs

By then the press had turned against Amelio. Business Week ran a cover asking “Is Apple Mincemeat?”; Red Herring ran an editorial headlined “Gil Amelio, Please Resign”; and Wired ran a cover that showed the Apple logo crucified as a sacred heart with a crown of thorns and the headline “Pray.” Mike Barnicle of the Boston Globe, railing against years of Apple mismanagement, wrote, “How can these nitwits still draw a paycheck when they took the only computer that didn’t frighten people and turned it into the technological equivalent of the 1997 Red Sox bullpen?”

When Jobs and Amelio had signed the contract in February, Jobs began hopping around exuberantly and declared, “You and I need to go out and have a great bottle of wine to celebrate!” Amelio offered to bring wine from his cellar and suggested that they invite their wives. It took until June before they settled on a date, and despite the rising tensions they were able to have a good time. The food and wine were as mismatched as the diners; Amelio brought a bottle of 1964 Cheval Blanc and a Montrachet that each cost about $300; Jobs chose a vegetarian restaurant in Redwood City where the food bill totaled $72. Amelio’s wife remarked afterward, “He’s such a charmer, and his wife is too.”

Jobs could seduce and charm people at will, and he liked to do so. People such as Amelio and Sculley allowed themselves to believe that because Jobs was charming them, it meant that he liked and respected them. It was an impression that he sometimes fostered by dishing out insincere flattery to those hungry for it. But Jobs could be charming to people he hated just as easily as he could be insulting to people he liked. Amelio didn’t see this because, like Sculley, he was so eager for Jobs’s affection. Indeed the words he used to describe his yearning for a good relationship with Jobs are almost the same as those used by Sculley. “When I was wrestling with a problem, I would walk through the issue with him,” Amelio recalled. “Nine times out of ten we would agree.” Somehow he willed himself to believe that Jobs really respected him: “I was in awe over the way Steve’s mind approached problems, and had the feeling we were building a mutually trusting relationship.”

Amelio’s disillusionment came a few days after their dinner. During their negotiations, he had insisted that Jobs hold the Apple stock he got for at least six months, and preferably longer. That six months ended in June. When a block of 1.5 million shares was sold, Amelio called Jobs. “I’m telling people that the shares sold were not yours,” he said. “Remember, you and I had an understanding that you wouldn’t sell any without advising us first.”

“That’s right,” Jobs replied. Amelio took that response to mean that Jobs had not sold his shares, and he issued a statement saying so. But when the next SEC filing came out, it revealed that Jobs had indeed sold the shares. “Dammit, Steve, I asked you point-blank about these shares and you denied it was you.” Jobs told Amelio that he had sold in a “fit of depression” about where Apple was going and he didn’t want to admit it because he was “a little embarrassed.” When I asked him about it years later, he simply said, “I didn’t feel I needed to tell Gil.”

Why did Jobs mislead Amelio about selling the shares? One reason is simple: Jobs sometimes avoided the truth. Helmut Sonnenfeldt once said of Henry Kissinger, “He lies not because it’s in his interest, he lies because it’s in his nature.” It was in Jobs’s nature to mislead or be secretive when he felt it was warranted. But he also indulged in being brutally honest at times, telling the truths that most of us sugarcoat or suppress. Both the dissembling and the truth-telling were simply different aspects of his Nietzschean attitude that ordinary rules didn’t apply to him.

Exit, Pursued by a Bear

Jobs had refused to quash Larry Ellison’s takeover talk, and he had secretly sold his shares and been misleading about it. So Amelio finally became convinced that Jobs was gunning for him. “I finally absorbed the fact that I had been too willing and too eager to believe he was on my team,” Amelio recalled. “Steve’s plans to manipulate my termination were charging forward.”

Jobs was indeed bad-mouthing Amelio at every opportunity. He couldn’t help himself. But there was a more important factor in turning the board against Amelio. Fred Anderson, the chief financial officer, saw it as his fiduciary duty to keep Ed Woolard and the board informed of Apple’s dire situation. “Fred was the guy telling me that cash was draining, people were leaving, and more key players were thinking of it,” said Woolard. “He made it clear the ship was going to hit the sand soon, and even he was thinking of leaving.” That added to the worries Woolard already had from watching Amelio bumble the shareholders meeting.

At an executive session of the board in June, with Amelio out of the room, Woolard described to current directors how he calculated their odds. “If we stay with Gil as CEO, I think there’s only a 10% chance we will avoid bankruptcy,” he said. “If we fire him and convince Steve to come take over, we have a 60% chance of surviving. If we fire Gil, don’t get Steve back, and have to search for a new CEO, then we have a 40% chance of surviving.” The board gave him authority to ask Jobs to return.

Woolard and his wife flew to London, where they were planning to watch the Wimbledon tennis matches. He saw some of the tennis during the day, but spent his evenings in his suite at the Inn on the Park calling people back in America, where it was daytime. By the end of his stay, his telephone bill was $2,000.

First, he called Jobs. The board was going to fire Amelio, he said, and it wanted Jobs to come back as CEO. Jobs had been aggressive in deriding Amelio and pushing his own ideas about where to take Apple. But suddenly, when offered the cup, he became coy. “I will help,” he replied.

“As CEO?” Woolard asked.

Jobs said no. Woolard pushed hard for him to become at least the acting CEO. Again Jobs demurred. “I will be an advisor,” he said. “Unpaid.” He also agreed to become a board member—that was something he had yearned for—but declined to be the board chairman. “That’s all I can give now,” he said. After rumors began circulating, he emailed a memo to Pixar employees assuring them that he was not abandoning them. “I got a call from Apple’s board of directors three weeks ago asking me to return to Apple as their CEO,” he wrote. “I declined. They then asked me to become chairman, and I again declined. So don’t worry—the crazy rumors are just that. I have no plans to leave Pixar. You’re stuck with me.”