A client was distributed stock options from a bank he was an investor, but not an employee. The bank sent him a W2 form with box 1 and box 2 as the same amount for the stock options. I know this isn't right, but what form should they have issued the stock options on since he was not an employee? I was thinking 1099-B, but I know options are handled differently.

FYI - I do business bookkeeping for him for a separate business and prepare both the corporate and personal tax returns for him. I'm trying to tell him the correct form he needs to tell the bank that issued them instead of the W2.