Abstract: This study aims to examine the influence of leader-member exchange (LMX) and compensation on employee performance by moderating organizational culture. The population of this study were employees at the Regional Personnel Agency (BKD) and the Financial Management Agency and Regional assets (BPKAD) of Pemalang Regency, amounting to 116 employees while the sampling technique used was the census. Data were analyzed using SPSS version 22 by testing the instrument, testing the model and testing the hypothesis. The results of hypothesis testing shows that performance is affected positively by LMX as well as compensation meanwhile organizational culture also moderates the influence of both LMX and compensation on the performance.

Key words: leader member exchange (LMX); compensation; performance; organizational culture

JEL code: M12