Abstract: Abstract: Based on upper echelon theory and compensation incentive theory, this paper to examine the effect of the executive group traits on corporate innovation with the data of China’ s small and medium-sized boards of listed companies from 2009 to 2014. And further more we use the method of clustering and FGLS to analyze the adjustment effect of executives pay on corporate innovation. We find that traits of executive group are significantly related to executive pay. We also find that the incentive factors of executive pay can positively related to the influence of executive group traits and corporate innovation. This paper not only enriches the theory of heterogeneity and upper echelon, but also provides a new perspective on research in enterprise innovation for small and medium-sized boards of listed companies. They document theoretical basis and empirical evidence for the study of enterprise innovation, and help managers to grasp the influence factors of enterprise innovation behavior.