This study on financial compensation and employee performance is written to examine the impact of financial compensation on employee performance in Rongtai Aluminium Benin city, Edo state. The study adopts a descriptive research survey design. Pilot study was conducted using a test-retest technique and the reliability of the research instrument was determined using the Cronbach alpha to establish the reliability of the instrument.  The population of the study is 800 employees of the company. However, considering the large size of the population the study adopts Godden sample size statistical formula to reach respondents numbering 260 through a 30 items structured questionnaire but only 226 respondents completed and returned their questionnaire given 87% retrieval rate. The statistical tools used comprised descriptive and inferential statistics and hypotheses tested using simple linear regression analysis. Finding revealed that there is a significant positive relationship salary and cycle time (r = .563, p-value <0.05), there is a significant positive relationship bonus and yield rate (r = .281, p-value <0.05), there is a significant positive relationship commission and product defect rate (r = .297, p-value <0.05). In view of the finding, the study concludes that there is a significant positive relationship between financial compensation and employee performance in Rongtai Aluminium Benin city, Edo State. Premised on the finding the study therefore recommends that manufacturing firms in Benin city particularly Rongtai Aluminium Company Limited should not only increase its financial compensation packages such as salaries, bonuses and commissions but it should also be properly integrated into its organizations’ welfare policy with the view to retaining it to achieve improved performance.