How to safeguard the shareholders’ equity of private listed companies through effective executive incentive mechanisms is a core issue in the development of private enterprises. Taking private enterprises listed on the Shanghai and Shenzhen stock exchanges from 2003 to 2019 as samples, this study introduces power incentives (whether executives concurrently serve as chairman) and economic incentives (compensation and equity incentives) as factors influencing executive incentives and explores how to establish executive incentive mechanisms more suitable for private listed companies in China. The research shows that there is an inverted U -shaped relationship between compensation incentives, equity incentives, and shareholders’ equity; there is a complementary relationship between power incentives and compensation incentives; there is a substitutive relationship between power incentives and equity incentives, and this substitutive effect weakens over time.