This paper investigated the influence of the original TMTs compensation incentives on real earnings management using samples of listed companies on GEM during 2009—2012. The empirical result is that original TMTs monetary compensation and nonpecuniary compensation have the Ushape relation with the level of real earnings management, which indicates the influences of bothsides on the level of real earnings management. While stockbased compensation shows a positive relation to real earnings management, indicating that the stockbased compensation is far from being higher, the level of real earnings management is lower, and blindly improving stockbased compensation will induce real earnings management.