This research aims to examine whether there is positive or negative relationship between compensation and employee performance in PT. Sorby International Medan. Researcher’s independent variable is compensation, meanwhile researcher’s dependent variable is employee performance. The research object is PT. Sorby International Medan and the sampling method is random sampling. In this research, researcher uses descriptive research method and type of investigation is causal study. Furthermore, researcher decides to use quantitative method to prove the hypothesis. After collecting the data or information and analyses it, researcher gets conclusions of the research which are: 1) There is a relationship between compensation and employee performance in PT. Sorby International Medan; 2) The impact of compensation towards employee performance is about 68.4% which means the rest 31.6% are affected by other factors besides compensation in PT. Sorby International Medan.