This study aims to determine the effect of the independent variable compensation on the dependent variable of employee performance through the mediation role of morale at PT. IE Moto Subang. The population in this study were employees of PT. IE Moto Subang, with a total sample of 170 respondents. Data collection techniques used in this study were accidental sampling using validity and reliability test analysis, classic assumption test, multiple linear regression analysis, T test, F test and sobel test. The results of the analysis showed that morale variables can mediate the effect of compensation towards employee performance.