This part confused me, "Directors also received what Apple describes as a "commemorative gift" for their service, said to be worth $7,580, plus a payment to cov

This part confused me, "Directors also received what Apple describes as a "commemorative gift" for their service, said to be worth $7,580, plus a payment to cover the tax liability for accepting the gift, which in Schmidt's case was $14,631." How can you have a tax liability that is 200% of an items value?