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Do you shoe check others at the office?
How do you measure bench strength?
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How would this happen if it’s not an option? If it is an option and they claim this is impacting their health, why would you not help them move and hire someone who can do the job you need well?
I’d worry less about your perceived authority and more about what’s right for your people. Create an environment where each person can succeed in their role.
PIP
Long term, what do you think the best future is for this individual and your company? For them to mature and grow and be promoted? For them to stay in their current level and role as a reliable but low potential individual? Or are there serious misalignments between them and the company that can’t be resolved?
If I was you, this would have a big impact on what I decided to do with the immediate situation.
"Undermine my authority" by getting what they want....sounds cringe. . . How does this impact you/why do you care?