Nothing changes despite new contract

In the context of the topical question of political reform, consider the following scenario: As an employer, you have given a man a five-year contract.

After two years he comes to you and says: “I am applying for another contract. If I get it I will be dropping this one, but don’t worry, I have already selected someone to take my place.”

You reply: “But your present contract has three years to run. Furthermore, I will select your replacement. By the way, who are you applying to for this new contract?” He replies: “You”.