Reality is complicated. You don't get at the truth by finding the absolutist statement that is correct most of the time. You have to conduct a more holistic analysis than that. What causes this person to be a jerk? Has the very behavior that caused them to be a jerk also led to the founding of this company? Would they lose their passion if we tried to cage them like a pet bird? If so, how critical is their passion to this company? What if they're absolutely, 100% right about something and they're being a "jerk" because they are trying to communicate precisely how much they think they're right and how wrong everyone else is? How right have they been in the past?
On top of asking the right questions, you need to do a first principles analysis. What drives this company to be profitable in a competitive context? Why do we want to reduce tension in this company? Is it because that tension is bad for profit? Are you sure?
[1]: I removed the following from the top of my comment: "There are "No" brilliant jerks? Absolutely none? What evidence is that based on?" because a below commenter is right that it doesn't really fit the primary meaning of the headline. My core point remains pretty much the same though.