Steve Jobs
the mouse.”
Atkinson and Jobs became best friends for a while, eating together at the Good Earth most nights. But John Couch and the other professional engineers on his Lisa team, many of them buttoned-down HP types, resented Jobs’s meddling and were infuriated by his frequent insults. There was also a clash of visions. Jobs wanted to build a VolksLisa, a simple and inexpensive product for the masses. “There was a tug-of-war between people like me, who wanted a lean machine, and those from HP, like Couch, who were aiming for the corporate market,” Jobs recalled.
Both Mike Scott and Mike Markkula were intent on bringing some order to Apple and became increasingly concerned about Jobs’s disruptive behavior. So in September 1980, they secretly plotted a reorganization. Couch was made the undisputed manager of the Lisa division. Jobs lost control of the computer he had named after his daughter. He was also stripped of his role as vice president for research and development. He was made non-executive chairman of the board. This position allowed him to remain Apple’s public face, but it meant that he had no operating control. That hurt. “I was upset and felt abandoned by Markkula,” he said. “He and Scotty felt I wasn’t up to running the Lisa division. I brooded about it a lot.”
CHAPTER NINE
GOING PUBLIC
A Man of Wealth and Fame
With Wozniak, 1981
Options
When Mike Markkula joined Jobs and Wozniak to turn their fledgling partnership into the Apple Computer Co. in January 1977, they valued it at $5,309. Less than four years later they decided it was time to take it public. It would become the most oversubscribed initial public offering since that of Ford Motors in 1956. By the end of December1980, Apple would be valued at $1.79 billion. Yes,
billion
. In the process it would make three hundred people millionaires.
Daniel Kottke was not one of them. He had been Jobs’s soul mate in college, in India, at the All One Farm, and in the rental house they shared during the Chrisann Brennan crisis. He joined Apple when it was headquartered in Jobs’s garage, and he still worked there as an hourly employee. But he was not at a high enough level to be cut in on the stock options that were awarded before the IPO. “I totally trusted Steve, and I assumed he would take care of me like I’d taken care of him, so I didn’t push,” said Kottke. The official reason he wasn’t given stock options was that he was an hourly technician, not a salaried engineer, which was the cutoff level for options. Even so, he could have justifiably been given “founder’s stock,” but Jobs decided not to. “Steve is the opposite of loyal,” according to Andy Hertz-feld, an early Apple engineer who has nevertheless remained friends with him. “He’s anti-loyal. He has to abandon the people he is close to.”
Kottke decided to press his case with Jobs by hovering outside his office and catching him to make a plea. But at each encounter, Jobs brushed him off. “What was really so difficult for me is that Steve never told me I wasn’t eligible,” recalled Kottke. “He owed me that as a friend. When I would ask him about stock, he would tell me I had to talk to my manager.” Finally, almost six months after the IPO, Kottke worked up the courage to march into Jobs’s office and try to hash out the issue. But when he got in to see him, Jobs was so cold that Kottke froze. “I just got choked up and began to cry and just couldn’t talk to him,” Kottke recalled. “Our friendship was all gone. It was so sad.”
Rod Holt, the engineer who had built the power supply, was getting a lot of options, and he tried to turn Jobs around. “We have to do something for your buddy Daniel,” he said, and he suggested they each give him some of their own options. “Whatever you give him, I will match it,” said Holt. Replied Jobs, “Okay. I will give him zero.”
Wozniak, not surprisingly, had the opposite attitude. Before the shares went public, he decided to sell, at a very low price, two thousand of his options to forty different midlevel employees. Most of his beneficiaries made enough to buy a home. Wozniak bought a dream homefor himself and his new wife, but she soon divorced him and kept the house. He also later gave shares outright to employees he felt had been shortchanged, including Kottke, Fernandez, Wigginton, and Espinosa. Everyone loved Wozniak, all the more so after his generosity, but
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