Since 2005 the pilot board of directors in central controlled companies brought the change of strategy decision from CEO administrative meeting to the board of directors. The paper focused on 17 central controlled companies which were listed on name list of pilot board of directors by SASAC. We use difference in difference method to explore the structure change of the board in listed companies during the process of parent central controlled companies initiating pilot board of directors. Comparing to non pilot board of directors companies, we found the number of independent directors of these pilot companies improved significantly. We also found the number of accounting background independent directors also improved significantly, and management tented to hold more stocks. The gradual improvement of governance structure of parent company has positive effect on subsidiaries.