Abstract: At present, many domestic and foreign enterprises use economic value added(EVA) as the evaluation index of their operating performance.Since 2010, SASAC has assessed the performance of heads of central enterprises with EVA.The paper thinks that EVA has some defects in the assessing performance of heads of central enterprises after having studied the essential meaning of “EVA” and China's current “Measures for the assessment of the performance of heads of central enterprises”.In order to overcome the defects of EVA, the author puts forward the concept of the Ratio of Economic Value Added to Capital(REVAC) and gives some suggestions that we use the index of REVAC to evaluate the performance of heads of central enterprises.