Abstract:108 small and medium-sized enterprises are chosen as samples between 2010 and 2013 from GEM Boards,this paper uses multiple linear regression model to study the influence of Executive Salary on Innovation Performance. The results of the study reveals that, the Executive Salary has a significant positive correlation with the Innovation Performance in GEM Boards,but u-shaped relationship is not significant. At present,Chinese GEM enterprises should raise the Executive Salary in order to better play the role of incentive.