Are you sure that's true?
If you sell right after you receive the stock, won't your gains be zero? (You might have to wait for an open trading window depending on tech company policy, and could have a gain or loss during that wait) You will have paid taxes on it, and your cost basis should be the same as the stock you now hold.
This is correct, and many people who receive company stock forget/don't understand it.
You don't pay short term capital gains on the total amount, only on the amount it appreciates after you receive it. If you sell immediately, it will appreciate almost 0, thus your taxes will be almost 0 assuming it's market price. If you receive a discount on the stock that discount amount may be treated as gains, as its value is higher than when you bought it.
My employer gives me a 10% discount on company stock with a limited buying window and quantity per 6 months, the discount applies to the lower of the price at the beginning and end of the 6 month window. I pay gains on the 10% discount, and if the price was lower at the beginning of the 6 months, that additional discount.
Scenario 1: Stock price is $5.00 at month 0 and $10.00 at month 6. I get the stock at the end of month 6 for $4.50/share (10% discount on $5.00). I pay taxes on $5.50 of the proceeds if I sell (difference between current $10.00 price and $4.50 purchase price).
Scenario 2: Stock price is $10.00 at month 0 and $5.00 at month 6. I get the stock at the end of month 6 for $4.50 share (10% discount on $5.00). I pay taxes on $0.50 of the proceeds if I sell (difference between current $5.00 price and $4.50 purchase price).
Our stock has stayed in the same ballpark over 6 months since the plan was implemented a little over a year ago, so it's closer to Scenario 2 as far as taxable gains. I sell immediately. If we have a situation like Scenario 1 I may reconsider, but I don't foresee anything that extreme happening too soon.
What does the community think my best play is here?
If they gave you cash instead, would you buy their stock with it? If not, you should sell and buy what you otherwise would. Your compensation is one phone call/email away from being cash the moment you get it, with little/no tax considerations needing to be considered. The only consideration is if you think their stock is where you should have your money. I would lean towards diversifying.