Abstract:Based on the estimation of executive talent by DEA-TOBIT two stage model (Demerjian et al.,2012; 2013),this paper,from the perspective of industry attributes and property rights,analyzes the relationship between contract reference point,the executive talent and executive compensation with the help of Chinese listed companies’ data from 2008 to 2013.The result shows that firstly,the higher the executive’s talent,the higher the executive’s compensation; secondly,a clear reference point effect exists in executive compensation contract,while state-owned enterprises or protected industries are more likely to use the reference point effect to stimulate the growth of executive compensation; finally,there are some differences of the reference point effect of executive compensation contract between high and low level of executive talent.It is much more obvious that state-owned enterprises and protected industries with high-talented executives use contract reference points to push forward the increase of executive compensation.