Due to the controversy of the rising use of equity-based compensation and enhanced responsibilities of audit committee, this study examines the determinants that affect firm’s use of stock and option to remunerate audit committee members. My results show that firms having severer agency conflicts are significantly negatively associated with the presence of equity-based compensation for audit committee. Furthermore, firms with more compensation committee members serving on audit committee are significantly more likely to adopt stock and option plans for audit committee members. Moreover, if there are more audit committee members who are also top managers of other companies, the probability of equity remuneration for audit committees will be lower. Overall, the study contributes to the research about the determinants of audit committee member’s compensation.