Great question!
You most assuredly should increase your withholding on this lump sum payment to anticipate the future tax on it. Most companies provide that option up front to help mitigate the tax burden. However, from personal experience, the withholding may still fall woefully short.
The best idea would be for you to use TurboTax's Tax Calculator to get an idea of the impact of this lump sum payment. (Please note, the calculator is still showing 2023 tax rates but it will update soon to be 2024.)