Abstract: Equity incentive is considered to be an incentive method that can effectively alleviate the principal-agent contradiction in modern enterprise mechanism. Enterprises hope that through the implementation of equity incentive to promote the balance of interests between owners and managers, it can also attract talents and improve performance to form competitive advantages, so as to ensure the stability of long-term development. Taking Aoto electronics as an example, this paper systematically analyzes the changes of market reaction after the implementation of equity incentive scheme. It finds that there are some problems in equity incentive of listed companies, such as insufficient incentive strength, unscientific assessment requirements, unreasonable incentive pricing and etc.Some suggestions are put forward, such as ensuring the intensity and continuity of incentive, carrying out multi-dimensional performance evaluation, setting floating exercise price and so on.