Apple's First CEO Michael Scott Made Bold But Flawed Choices

As Apple celebrates its 50th anniversary, the company's early history and its first CEO's impact are recounted.

Published on Feb. 27, 2026

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Michael Scott was Apple's first CEO, leading the company from 1977 to 1981. During his tenure, he made bold decisions to organize and professionalize the young startup, including issuing employee ID badges, licensing BASIC from Microsoft, and pushing Apple to use its own computers. However, Scott also made some poor hiring choices, mismanaged the troubled Apple III project, and controversially fired a quarter of Apple's managers in an attempt to return to a startup mentality. His successor, Mike Markkula, ultimately replaced Scott as CEO in 1981.

Why it matters

Michael Scott's leadership of Apple in its early years laid important groundwork, but also highlighted the challenges of managing a rapidly growing tech company. His successes and failures provide insights into Apple's formative years and the evolution of its corporate culture, which would go on to shape the company's future under iconic CEOs like Steve Jobs.

The details

As Apple's first CEO, Michael Scott took steps to professionalize the young company, issuing employee ID badges and pushing Apple to use its own computers. However, he also made some questionable decisions, like firing a quarter of Apple's managers in an attempt to return to a startup mentality. Scott also struggled to manage the troubled Apple III project, which suffered from shipping delays and technical issues. Ultimately, Scott was replaced as CEO in 1981 by Mike Markkula, who would go on to have a major impact on Apple's future direction.

  • Michael Scott became Apple's first CEO in February 1977.
  • In December 1980, Apple held its initial public offering (IPO).
  • On February 25, 1981, Scott fired 40 Apple employees in what became known as "Black Wednesday".
  • In March 1981, Mike Markkula replaced Michael Scott as Apple's CEO.
  • Scott left Apple in July 1981.

The players

Michael Scott

Apple's first CEO, who led the company from 1977 to 1981 and made bold but flawed decisions during Apple's early years.

Steve Jobs

Apple co-founder who clashed with CEO Michael Scott over control of the Lisa project.

Steve Wozniak

Apple co-founder who was generous with his Apple shares, nearly causing the company to have too many shareholders before its IPO.

Mike Markkula

Apple's second CEO, who replaced Michael Scott in 1981 and had a major impact on the company's future direction.

Chris Espinosa

Apple employee who wrote the manual for the Apple II based on earlier documentation efforts.

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What they’re saying

“After setting up the framework for the concepts and finding the key people and sort of setting the technical directions, Scotty decided I didn't have the experience to run the thing. It hurt a lot. There's no getting around it.”

— Steve Jobs (Apple Confidential 2.0)

“I could tell there was something wrong from the moment I stepped into the building, on the morning of Wednesday, February 25th, 1981. Instead of the normal office buzz, there was a muted sadness hanging in the air. People were standing around, huddled in small groups.”

— Andy Hertzfeld, Apple employee (Folklore.org)

“I'll fire people until it's fun again.”

— Michael Scott, Apple CEO (Apple Confidential 2.0)

What’s next

Mike Markkula's tenure as Apple's second CEO and the lasting impact of his leadership on the company's future direction will be the focus of the next article in this series.

The takeaway

Michael Scott's time as Apple's first CEO highlighted the challenges of managing a rapidly growing tech company in its early stages. While he made bold decisions to professionalize and organize the startup, his flawed leadership also led to missteps that foreshadowed the need for more experienced and strategic guidance, which his successor Mike Markkula would ultimately provide.