The annual salary system, which is base on the annual cycle, is a universal method to pay for the operator of the firm and associate the operator’s salary with the firm’s performance. It consists of basic income and benefit income. There are a lot of methods to determine the annual salary, but usually using the method of basic salary and venture income. According to collect the report and information of the annual salary, executives incentive mechanism and the annual salary payment, the article, which is base on incentive measures of the firm with senior manager, discusses the impact of implementing the annual system and various payment. We finally arrive at a conclusion on the senior manager’s annual salary system .This article is in the hope of providing domestic enterprises some useful insights and help.