Listed companies was forced to set up the Compensation Committee in 2011. However, if the Compensation Committee is only set up but doesn’t work, then the company still can’t design a motivational and reasonable compensation program. Therefore, the purpose of this paper is to investigate the economic determinants of compensation committee quality. The results may offer lessons to improve Compensation Committee Quality. Sample firms were selected from the TEJ and M.O.P.S. database. Compensation committee quality is measured as the comprehensive factor of five compensation committee characteristics. Tobit model regression is conducted to investigate the determinants of compensation committee quality. The empirical results show that that firms which have independent directors and audit committee are more likely to have high quality compensation committee. In addition, growth opportunities and size are positively related to the quality of compensation committee. Finally, firms are not in the electronic and financial industry are more likely to have high quality compensation committee.