With all the sales Luly has made, I doubt he has generated enough funds on an after-tax basis to pay the tax he owes on the 270k option exercise. The stock sales would have yielded about $4,460,000 gross, and after capital gains tax (assumed to be 30% federal and state), roughly $3,120,000 net. His tax liability on the option exercise at ordinary income rates (45% combined) would be roughly $3,900,000 (assuming my memory as to a $32/share price at the time of exercise is relatively accurate). No guarantees as to my arithmetic or memory, but I am fairly sure that the tax payment explanation for all of the sales is true.
