Using the data of annual executive pay of 1654 listed companies in non-finance and non-insurance industries during 2005-2010, this paper analyzes the relationship between executive pay structure and firm performance in various kinds of firms with different firm characteristics, and details the possible different implementation effects of two theories applied in different kinds of firms, namely tournament theory and behavior theory. The result indicates as follows:all kinds of firms are suitable to apply tournament theory to design their incent...