Abstract:Based on the data of non-financial insurance listed companies in Shanghai and Shenzhen A-share markets from 2010 to 2014, this paper makes an empirical test on the relationship among the degree of executive compensation incentive of listed companies, internal control effectiveness and corporate performance. The study shows that: the higher the degree of executive compensation incentive, the better the effectiveness of internal control; There are significant positive correlation among internal control effectiveness, executive compensation incentive and firm performance. Internal control effectiveness is intermediary variable showing the degree of executive incentive effect on firm performance, there is significant partial intermediary effect in-between. The test of different groups classified by different controlling ownership continues to prove the existence of this effect. Therefore, listed companies should consider internal control on the salary incentive effect in the development of executive compensation incentive plan. In order to better achieve the purpose of motivating executives, and improve the corporate performance, the listed companies need to establish mechanism matched with the executive compensation incentive mechanism and improve the internal control of the listed companies.