Abstract: Based on the classic assignment model theory, this paper uses the equity incentive plan implemented by private enterprises from 2008 to 2018 as a sample to analyze the impact of insufficient equity incentive returns on executive turnover from the perspective of both manager and the supply and demand side of labor market. It is found that there is a problem of insufficient returns in equity incentive, which is serious year by year. When the manager′s income is less than the level matching with its performance contribution, the turnover probability will be significantly increased; when the company′s performance is higher than the average market level, the degree of industry competition is higher, or the average compensation of industry executives is higher than the individual salary of executives, the impact of insufficient equity incentive income on the turnover of executives is more significant;at the same time, the insufficient return on equity incentive will have a significantly negative impact on corporate performance and stock market performance by increasing the turnover probability of executives. The conclusion shows that the market efficiency of manager in China is still very low, and the effective incentive of management is still an important problem to be solved.

Key words: equity incentive, earnings shortage, executive turnover, manager market, assignment model