With the development of economy, the separation of ownership and management rights is common in listed enterprises, which is accompanied by the corresponding agency problem. The effective reduction of agency costs and risks is conducive to the internal governance of enterprises, so as to improve business performance. Employee stock ownership plan can make employees have ownership, change the ownership structure and affect the business performance to a certain extent. Taking Suning Tesco's implementation of employee stock ownership plan as an example, the change of its agency cost and its profitability, solvency and operating ability are analyzed to judge the impact of the incentive plan on the enterprise's operating performance.The implementation of employee stock ownership plan is conducive to the improvement of short-term performance of enterprises, but in order to achieve better incentive effect, the incentive plan needs to be adjusted according to the specific situation.