Based on the data of A-share listed companies from 2008 to 2016, we examine the relation between non-executive employee equity incentives and the quality of internal control. The result presents a positive link between non-executive employee equity incentives and the quality of internal control. Overall, the implementation of equity incentive plan helps to improve the quality of internal control. On the one hand, non-executive employee equity incentives promote the implication of internal control elements, such as control environment, control activities and communication. On the other hand, non-executive employee equity incentives also contribute to the realization of strategic and operational goals. Further analysis shows that the positive effects of non-executive employee equity incentives are more significant in companies with lower level of marketing and higher level of industry competition. In order to achieve the performance targets, employees are more likely to strengthen internal governance, such as improve the quality of internal control when the external environment is more severe.