I suspect that all this options hullabaloo has roots with Ms./Mrs. Heinen. She was one of the NeXTies that came over with Jobs.
The NeXTies were arrogant and condescending of Apple, and they very likely took their arrogance to heart. Avi Tevanian did.
Apple's advisory attorneys surely knew of this. They also knew that there is advantage in having a high level politico on the board. Of course Jobs' ego would accept the idea. Gore makes a nice little story...