Based on the sample of Shanghai and Shenzhen A-share listed companies with executive stock reductions in 2015-2017, this paper researched the impact of external compensation fairness on the income and risk appetite of executive stocks" reduction. Our study found that executives tend to reduce their shareholdings when stock prices and internal and external risks are high. There is a range effect on the impact of external compensation fairness on the stock reduction of executives. When compensation is negative-unfairness, there is a relation of inverted “U” pattern, while positive-unfairness a positive relation. Further analysis shows that when the compensation is negative-unfairness, the executive"s preference for reduction is changed from income chasing to loss avoidance; when the compensation is positive-unfairness, risk avoidance is the main motivation for reduction.