Managerial compensation has becoming a focus in foreign countries. In early stage , agency theory , the mainstream school on the issue ,has focused on pay-performance sensitivity. Recently ,human capital ,labor market school and“firm organization”school has improve managerial compensation theory from the aspects of human capi2 tal ,executive market and firmorganization characters. Future research should consider integration of the various theo2 retical traditions and construct the synthetical model of managerial compensation to drive the field.