Abstract: A correct understanding and scientific measuring of fairness and rationality of the compensation is a key issue that enterprise management needs to solve. This paper defines equity tolerance as the maximum of the pay gap that employees can accept. Through questionnaire survey and panel data of listed companies，we find out that industry characteristics，regions，job levels and other work environment factors have an impact on equity tolerance，and we confirm the critical point of the positive effect that equity tolerance exerts on enterprise performance. The critical value of equity tolerance of the pay gap between employees and department leaders is 57.17，and the critical value of fair tolerance between employees and top leaders is 305.12. Below this threshold，equity tolerance plays a significant positive role in promoting job performance；otherwise，it will play a significant negative role. The threshold value of equity tolerance of the pay gap of listed companies is 454.69. When it is lower than this critical value，equity tolerance has a positive effect on business income and a negative impact on operating income otherwise.

Key words: equity tolerance, job performance, operation income, net profit, pay gap