| In 2012, the 18th National Congress of the Communist Party of China clearly put forward the "adhere to the road of independent innovation with Chinese characteristics, the implementation of innovation-driven development strategy", enterprises, especially private enterprises are facing the market environment, institutional mechanisms and external competition is gradually changing. Complex and volatile economic situation, deepening reform and opening up, although the development and expansion of private enterprises to bring a good opportunity but also made an urgent challenge. In the face of the complexity of market economy, the urgency of rapid development and the soundness of strategic change, especially with the special historical process of the development of private enterprises in China, most of them have entered the stage of upgrading of entrepreneurs and executives. For enterprises, in the special stage of economic transformation should be achieved through what means to achieve a smooth transfer of power to ensure that business performance is a public need to solve the problem of private enterprises.This paper first introduces the causes, objectives and tasks of China’s economic transformation and upgrading, and the role and development of private enterprises. The author puts forward the relationship between the change of private entrepreneurs, the level of pay and the performance of enterprises, And the relationship between salary incentive and corporate performance. On the one hand, through the longitudinal comparison of China’s listed private entrepreneurs to replace the way the short-term and long-term benefits of the law. On the other hand, the author explores the effect of different salary incentive methods on the performance of private enterprises in China, and compares the similarities and differences between the incentive methods.The main conclusions of this paper are as follows:(1) In the context of economic transformation, private enterprises need to seize the opportunity of economic transformation, according to the future development strategy of enterprises to build enterprise executives selection and evaluation standards, help private enterprises to quickly adapt to economic restructuring, clear future strategic development direction, Maintain its own core competitiveness.(2) There is a significant influence between the way of entrepreneur replacement and short-term / long-term performance, and the internal successor is suitable for the pursuit of short-term benefits. In the stage of economic transformation, external successors are more suitable for the formulation of long-term strategy and the pursuit of long-term performance.(3) The successor of different sources of entrepreneurs, the incentive program for the different degree of sensitivity. The successor of corporate performance as a successor entrepreneur is judged by the effect of compensation incentives, and external successors are more sensitive to short-term pay, while internal successors are more likely to gain stock returns. |