He does not own stock in the new bank. When the bank was sold, they new bank did not give them that option and anyone who had stock in the old bank had to cash in their options. FYI, it was a little bank purchased by a slightly bigger, yet smaller, bank.

He was considered a director, which is why I expected it to be on a 1099 as he has never received any type of compensation from the bank. He does have the paperwork from originally purchasing the stock 18 years ago, but there was no other paperwork for him being a director (it was a very tiny bank.) 

I'm pretty sure it was supposed to be issued on the 1099, thus the reason why I've asked him to go back to the payroll company who handled the issuing of the W2. I think the same amounts in wages and federal taxes withheld are incorrect, so he's checking on that as well.