"Does he pay taxes on the excess?"

What does "compensatory" mean? Punitive? Physical Injury? Back pay? Pain and suffering? Emotional distress? Unlawful discrimination on the job? Separated amounts for more than one reason?

Because you need to determine if the settlement is taxable separately from the status of legal fees as redefined in TCJA.

Have you read any of the IRS resources, such as:

https://www.irs.gov/government-entities/tax-implications-of-settlements-and-judgments

https://www.irs.gov/pub/irs-pdf/p4345.pdf