Abstract: This paper analyzes the problem of manager’s risk-sharing and incentive design in termination menace.This research expands linear agent-principal incentive model through substituting measurable human capital for ability’s factor in enterprise productive linear function.At the same time this paper figures out recessive function of sharing coefficient in sharing contract through transplanting termination probability in agent-principal participation constrains and incentive compatibility conditions.We draw the relationship among effort,human capital variable,sharing coefficient and termination cost,and explain substitution between explicit incentive and implicit incentive,on basis of which we put forth policy suggestion of substitution market recessive incentive for control recessive incentive and perfecting relevant institution circumstance for improving the efficientcy of incentive contract.

Key words: termination cost, risk-sharing, human capital, incentive compatibility