GreeElectricisaChinesemajorappliancemanufacturerheadquarteredinZhuhai,Guangdongprovince. It is the world's largest residential air-conditioner manufacturer. It was listed on theShenzhenStock Exchange.

OnJune20,2021,GreeElectricannounceditsdraftEmployeeStockOwnershipPlan(ESOP).TheplanallowsESOPparticipatingemployeestobuyshares,iftheymeetcertainperformancetargets,atthepriceof27.68CNYpershare.Atthattime,GreeElectric'ssharepricewas53.68CNYpershare.

The performance target is set at only 10% higher in profit, from previous year. Among over80,000 employees, total number of eligible employees to participate in the ESOP shall notexceed12000.Amongthem,DongMingzhu,chairmanandpresidentoftheboardofdirectors,plansto subscribeupto 30 millionshares, accounting forabout 27.68%oftheESOP.

Examine the issues in Gree's ESOP plan that would potentially give rise to agency problems.Note:Thepresentation oftheanswershouldbeconciseand clear.