the option values in an annual report are calculated differently...

the option values in an annual report are calculated differently than income tax

from memory (could be outdated) was that you are taxed when the options vest

have heard of executives not being aware of the tax implications and simply exercising their options assuming they then roll into shares on CGT account.. public information so pretty easy for the ATO to audit

(the fine the ATO applied would be for not taking reasonable care)