Abstrak Penelitian ini menjelaskan pengaruh kepemimpinan transformasional, kompensasi terhadap budaya organisasi dan kinerja pegawai. Populasinya adalah seluruh Pegawai Negeri Sipil Badan Keuangan Daerah Kota Batu yang berjumlah 95 orang. Metode analisis data dengan menggunakan software SmartPLS Versi 3 yang dijalankan dengan media komputer. Hasil temuan menunjukkan bahwa kepemimpinan transformasional mampu meningkatkan budaya organisasi. Kompensasi mampu meningkatkan budaya organisasi dan kinerja pegawai. Kepemimpinan transformasional belum mampu meningkatkan kinerja pegawai. Budaya organisasi mampu meningkatkan kinerja pegawai Budaya organisasi memiliki dua peran dalam memediasi hubungan antar variabel tersebut. Kata Kunci: Kepemimpionan Transformasional, Kompensasi, Budaya Organisasi, Kinerja Pegawai. Abstract This study explains the effect of transformational leadership, compensation on organizational culture and employee performance. The population consists of all 95 Civil Servants of the Batu City Regional Financial Agency. Methods of data analysis using SmartPLS Version 3 software run on computer media. The findings show that transformational leadership is able to improve organizational culture. Compensation is able to improve organizational culture and employee performance. Transformational leadership has not been able to improve employee performance. Organizational culture is able to improve employee performance. Organizational culture has two roles in mediating the relationship between these variables. Keywords: Transformational Leadership, Compensation, Organizational Culture, Employee Performance.