[sjs7007]

> compensation is considered regular income for the year it is awarded based on the difference between the strike price and the market price

Isn't that exactly how it works? Your grant price just determines your number of your shares. When your shares vest they get taxed as regular income for the entirety of the vest amount.

[dmoy]

> When your shares vest they get taxed as regular income for the entirety of the vest amount.

This describes restricted stock units. Stock options are taxed differently.