This study aimed to find out how the mediating role of job satisfaction in the relationship between compensation and work environment on performance. The analysis technique in this study uses path analysis with SPSS software. The population used is employees from State-Owned Banks in Pontianak, Indonesia. The sample used was 150 employees who worked at the State-Owned Banks in Pontianak, Indonesia. The results showed that compensation had a significant effect on job satisfaction, and the work environment had a significant effect on job satisfaction. Compensation has no effect on performance, work environment has a significant effect on performance, and job satisfaction has a significant effect on performance. The results also show that compensation has a significant effect on performance through job satisfaction and work environment has a significant effect on performance through job satisfaction.

Keywords: Compensation, Work Environment, Job Satisfaction and Performance