"Alternatively, they could simply hold the option, which costs them nothing, and just pay the normal taxes (33%+) when exercising and selling." This forfeits t

"Alternatively, they could simply hold the option, which costs them nothing, and just pay the normal taxes (33%+) when exercising and selling." This forfeits the tax advantages of an ISO. You don't need early exercise, you exercise when they vest, hold them for a year, and sell at long term treatment.