Because of the separation of enterprise ownership and management rights, the contradiction between managers and shareholders is always the root cause of intensifying the conflict of interest between them. Equity incentive, as an effective medium and long term incentive mechanism for management, can alleviate agency problems and reduce agency costs, and is an important means to solve conflicts of interest. In order to improve the loyalty of the management to the company, prevent the short-sighted behavior of the management, and guide the management to maximize their personal talents, based on the data of Shanghai and Shenzhen A-share listed companies from 2014 to 2022, descriptive statistics, correlation analysis, regression analysis and other analytical methods were used to study the relationship between executive equity incentives and corporate performance. It is found that the implementation of equity incentive has dual significance. It can not only effectively improve enterprise performance, but also reduce agency costs.