At Forrester, Katie called a meeting of all the major players. She asked Thorne to resume the position of Vice President. He turned her down, claiming that he was happy where he was — working with the disgruntled employees. Katie's second choice was Donna, who agreed, saying that she would find a way to finesse it with her husband. Next, Katie announced that Rick would be running Forrester International from his home base of Los Angeles. The final order of business was to name a President, with Ridge being the obvious choice. "I cannot be an executive for you, Katie. I'm sorry," Ridge said coolly. He agreed to continue to head up the design team, however. Trying not to get frustrated, Katie mused that Eric was the next logical choice for President, but realized he would never accept the position. She looked to Brooke, whose eyes lit up at the possibility. After clearing it with Ridge, Brooke accepted. After the meeting adjourned, Bill told Katie how proud he was of how well she had handled the situation.

In the Spencer showroom, Justin was furious with an employee who was walking out on the job. He called Bill and announced that he had a solution to the problem. Bill liked what he heard, and ordered Donna to grab a "beautiful Forrester gown" and head over to Spencer. A confused Donna did as she was asked. Katie wanted to know what Bill had up his sleeve. "As your CEO, I demand you tell me!" she joked. Bill refused to divulge his secret, but assured her it would be good for the company.

When Donna arrived at Spencer, she was caught off guard when she was led to the set of the talk show "The Catwalk.” She told Justin how much she loved the show. Justin was glad to hear it, since their host had quit and she would be replacing him! Donna was thrilled with her new assignment, as she had always wanted to be a television host. She tried out the host's chair and was quite comfortable. She excitedly agreed to take the job, and giddily rushed off to her new dressing room.

Over at Jackie M., Pam answered the phone. Justin was calling to request Stephanie as a guest on "The Catwalk.” Pam agreed, and upon hanging up, shared her excitement with her lunch guest, Sergei. The two squealed happily, and Sergei announced that he had a crush on the "delicious" host ... obviously not knowing that he had been replaced with Donna! Pam rushed into Jackie's office to inform Stephanie of her new guest spot. Steph suggested Jackie go instead, but Jackie wouldn't hear of it. Stephanie was reluctant to do anything that would benefit Spencer, but didn't want to disappoint her excited sister. She agreed to do the show, and she and Pam headed over to Spencer.

Bill paid Ridge a visit in his office, and delivered his first assignment. "My fiancée's wedding gown. I want you to design it," he announced. Ridge said he was hoping it would never come to that, because Katie marrying him would be the biggest mistake of her life. Katie and Brooke entered and were disturbed by Bill's latest directive. Katie and Bill left so that Ridge and Brooke could be alone. "He owns us, Brooke. We've lost everything," Ridge said sadly. They embraced. "I feel trapped here, Logan. I just don't know if I can keep going. I should have fought Spencer until my last breath," he lamented. He announced that somehow, some way he would get Forrester Creations back. After he left, Brooke got an idea, and placed a mysterious phone call. While on hold, she whispered, "I'm doing this for you, Ridge ... only for you!" When the person came back on the line, she instructed, "You must do exactly as I say."