I think California uses an "allocation ratio" to determine how much he will owe when he exercises those options [1], so he's not getting away tax-free. 1: http

I think California uses an "allocation ratio" to determine how much he will owe when he exercises those options [1], so he's not getting away tax-free. 1: https://www.ftb.ca.gov/forms/misc/1004.html https://www.ftb.ca.gov/forms/misc/1004.html