It is vital for enterprises to design effective incentive contracts，with fairness and efficiency balanced，to make full use of the human capital they possess．Choosing the A-share listed firms in China from 2003 to 2014 as the sample，the paper empirically studies corporate strategy and its influence on the pay gap between chief executive officers and rank-and-file employees．The results show that: the more offensive a company’s strategy is，the more likely it pays higher executive pays and lower rank-and-file employee wages，thus resulting a larger CEO-employee pay gap; the relationship between corporate strategy and CEO-employee pay gap is more significant in private enterprises than in local and central state-owned enterprises．After a further examination，it is found that the CEO-employee pay gap caused by the differences in strategies could promote a firm’s investment efficiency and performance．The results are of some reference value to objectively evaluate the CEO-employee pay gap and optimize the compensation control policy in China．