The Comeback Kids

Feb. 1, 2007 — -- Another billionaire is back. Michael Dell has now been awarded the rank of "comeback kid" with Charles Schwab and Steve Jobs. All three men were called in by the companies they created to save the day.

Dell's return to one of the world's largest computer manufacturers is effective immediately and comes after nearly a four-year hiatus. Investors didn't take long to cheer the resignation of Dell's former CEO Kevin Rollins. They sent shares up 39 cents in mid-day trading.

Yale Professor Jeffrey Sonnenfeld says it's not unusual for these men to want to come in and help their companies. "This is their baby that they have guided through many life stages. They feel a great sense of personal pride."

But Sonnenfeld, author of "Firing Back: How Great Leaders Rebound After Career Disasters," says having to come back is often a humbling moment. "It is a statement you failed, it is not a moment of triumph."

Making more money is not the only issue -- saving the company that is tied to their name is what is at stake.

Dell, 41, created a computer company in his college dorm room 15 years ago.

Dell was a $53 billion company whose stock dropped from more than $40 a share two years ago to about $25. Just last year, Dell lost its No. 1 position in the industry to rival Hewlett-Packard.

Dell says he will focus on building momentum with Dell 2.0. He still believes the company has tremendous potential, and efforts will be "geared toward providing the best customer experience."

Founders have been successful turning things around before. Shares of Charles Schwab more than doubled since Schwab returned in July 2004; and Apple Inc.'s stock surged 15-fold since co-founder Steve Jobs returned as CEO in 1997.

Schwab, 69, came out of retirement in 2004 when his discount brokerage business lost its No. 1 position.

Schwab is the world's second-largest discount broker, second to Fidelity Investments. It is a $24 billion company and in the past four years, the share price has doubled from under 10 dollars to nearly 20 dollars.