The optimization of the employee compensation system and the construction of the employee incentive mechanism in state-owned enterprises have always been the focus of deepening the reform of state-owned enterprises. The current situation of executive compensation system and the relevant literature of executive compensation policies of state-owned enterprises are systematically analyzed, the factors affecting executive compensation of state-owned listed companies are sort out. Based on panel data analysis model, and selecting samples of Chinese state-owned listed companies from 2010 to 2020, the relationship between executive compensation, business performance and compensation policies of different types of state-owned listed companies is explored. It is found that executive compensation policies and business performance have a significant positive impact on executive compensation of the two types of state-owned listed companies. Based on the research conclusions, management suggestions for the two types of state-owned listed companies are put forward from the perspectives of government compensation control, corporate governance, enhancing performance sensitivity of executive compensation, and improving the way of compensation incentive.