For widely held firms, managers have a small amount of equity will inspire them to pursue their own interests, but with the increase in the share of equity managers, their interests will converge with the majority shareholder, to maximize the benefits of its deviation tendency it will be reduced. After Hall and Liba Man by the most recent America's largest listed company CEO pay data analysis, where the company's CEO pay and performance there is a strong correlation, and this effect mainly reflected the CEO held changes in the stock and stock option value. Equity incentive emergence has its profound economic theory and practical background. Abroad on a specific theory in this regard are the following: