This paper researches on the earnings management of Chinese listed companies after the application of new accounting rules, and how the earnings after earnings management influence the top executives compensation. The result suggests that there is a widespread earnings management through investment income among companies and investment income significantly improves the level of top executives compensation. In addition, this paper researches on the effect of shareholding structure on the earnings management and pay-performance sensitivity. The result also suggests that the degrees of earnings management and pay-performance sensitivity in state control and shareholder concentration companies are much lower than those in non-state control and shareholder dispersion companies. State control and shareholder concentration companies can restrain the earnings management, but can not improve pay-performance sensitivity.