But if he doesn't hold the stock for at least one year, he gets short-term capital gains rate of 35%, rather than the long-term one of 15%, which might tip the scale the other way.
But then again, if he exercises in one year and does not sell that year, he gets the tax bill in the exercise year, potentially with no way to cover it.
But then again, if he exercises in one year and does not sell that year, he gets the tax bill in the exercise year, potentially with no way to cover it.
It's a lot more complicated than it should be.