[cjoh]

I am more interested to know how much of that payout he will be taxed on

[gok]

Compensation like this is considered regular income, so as Tim is a California resident over half will be owed as tax immediately.

[webinvest]

If it’s mostly long term capital gains, he’s in the 20% LTCG tax bracket.

[bzbarsky]

23.8%, because he would surely have to pay NIIT as well, right?

But also, that's just federal taxes. California adds 13.3% on top of that (for any income over $1 million, which is most of the income here).

But also, this is a stock grant, which generally get taxed as ordinary income, so I would expect 37% federal, 2.35% medicare, 13.3% California tax, adding up to 52.65% in taxes.