I think it's unfortunate that he doesn't go into greater detail on the "considerable problems" posed by employees selling their options (or similar transactions

I think it's unfortunate that he doesn't go into greater detail on the "considerable problems" posed by employees selling their options (or similar transactions). From the simple perspective of fair dealing with employees, it seems obvious that employees should be able to do with what they've earned as they will, so there must be some legal reason that this is inconvenient. If he actually thinks that the incentive argument is strong enough to override the moral argument I would be skeptical, but would love to hear a fully fleshed out argument, given that employers could instead change vesting schedules if they think employees don't actually deserve to own those shares at those times.