In 2006, China’s Ministry of Finance formally announced the issuance of its new Chinese Accounting Standards for Business Enterprises (CASBE), which had included almost all International Financial Reporting Standards and thus the implementation of new CASBE is treated as a mandatory IFRS adoption. This study investigates how the mandatorily adopted IFRS affects the sensitivity of Chinese executive compensation in public firms to accounting-based performance. Basing on the most updated and extended firm-year data from 2002 to 2012, strong evidence is achieved to support the negative role of China’s mandatorily adopted IFRS on the sensitivity of executive compensation to accounting-based performance.