Based on the special background of Chinas economic transition, the study examines whether executive compensation has a risk sensitivity or not from the perspective of banks risk taking by using 2001—2012 data from Chinese listed banks. The results show that, executive compensation has a significant negative correlation with risk taking. It also means that executive compensation of Chinese listed banks have a risk sensitivity. The further research shows independent directors and board meetings have no significant correlations with a risk sensitivity of executive compensation, and a board size and risk taking on executive compensation shows the alternative relationship between each other, but the alternative relationship mainly exists in non state controlled banks. At the same time, with respect to the non state controlled banks, risk sensitivity of executive compensation appears stronger in state controlled banks, and it shows that state controlled banks always pay more attention on risk controlling.