Based on China's unique economic system environment, this paper explains the impact of executive compensation on corporate performance in different aspects from the aspects of corporate governance, including principal-agent theory, human capital theory, management incentive theory, management rights theory, and tournament theory. At the same time, this paper takes A-share listed companies in Shanghai and Shenzhen as an example to study the impact of corporate performance. In order to promote the improvement of enterprise performance, and establish and improve the incentive mechanism of listed company executives, it provides the corresponding basis. Finally, the conclusion that executive compensation is positively related to corporate performance is drawn. Executive compensation directly affects corporate performance. If A-share listed companies want to increase enterprise performance, they must combine all aspects organically. Incentive and restriction, market regulation and internal management are all parts that can not be ignored. Only in this way can we promote the company's performance and achieve the goal of stable development of the enterprise.
Key words: electrical machinery manufacturing industry; executive compensation; company performance