In China, most studies about the relation between executive compensation and firm performance have focused on state-owned enterprises. But, few extant literatures consider Chinese family companies. Since China started its economic reform in 1978, the family economy has been booming, and the quantity of family listed corporates is increasing quickly. Currently, China’s non-state sector accounts for around 65% of its GDP and 70–80% of its GDP growth. Compared with state-owned enterprises, family companies with clear property rights can help avoiding the insider control. These family firms have also some specific characteristics in terms of the shareholding structure, corporate governance, agency problem and so on . So this study which focuses on the relation between executive compensation and firm performance about family companies is of theoretical and practical significance. This issue also attracts our attention.