Your assumption is incorrect regarding the reasons for exercising options. Early exercise of options often garners positive tax benefits for the optionee.
That's a good point. What I left unstated, and what I was wondering was if this individual was given guidance by the founders to exercise his options. Thereby effectively reducing his salary further, when he already stated that his salary was an issue of contention. Something I'd be guarded about.
However, you are right, if this company succeeds, he saves some money on taxes by owning stock early.
