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The aims of study are to examine and analyze the influence of situational leadership style and compensation on employee performance with job satisfaction as intervening variable. This research was conducted at PT Bank Rakyat Indonesia Denpasar Branch Office with population and sample of all employees working at PT Bank Rakyat Indonesia (Persero) Tbk Denpasar Branch Office, which are 64 people. All data obtained from the questioner distribution is feasible to be used, then analyzed using model of structural equation based on variance known as Partial Least Square (PLS) analysis. The result of the research shows that (1) situational leadership impact positive and significant effect on job satisfaction, (2) compensation impact positive and significant effect on job satisfaction, (3) job satisfaction has positive and significant effect to employee's performance, (4) situational leadership has positive and (6) situational leadership impact positive and significant effect on employee performance through job satisfaction, (7) compensation impact positive and significant effect on employee performance through job satisfaction. (5) Compensation have impact a negative effect on employee performance. The implication of this research is that situational leadership can be improved by paying attention to exemplary in order to increase employee performance. Compensation can be increased by paying attention to incentive to sacrifice to increase employee performance. Job satisfaction can be enhanced by paying attention to the superiority of employee's ability to improve employee performance last employee performance can be improved by taking into account the responsibility.
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