In principle it sounds like a reasonable idea but the obvious problem is that people can become domiciled elsewhere, or structure their income to avoid this. It would be interesting to know what's been planned to mitigate that.
Physicians don't get options, attorneys don't get options. This is a fairy tale answer not grounded in reality.
- live in Washington State; AND
- are compensated at least in part in options; AND
- are compensated in excess of $1M a year; AND
- are compensated far enough in excess of $1M a year that they are willing to spend time and money lowering that tax liability