In this study, a total of 506 samples, including pay satisfaction questionnaires and objective salary data are collected from 14 Chinese organizations. Curve regression and Hierarchical multiple regressions are used to confirm the research hypothesis. The results indicate that there is an inverted Ushaped relationship between Performancebased pay intensity and pay satisfaction and employees’ position level moderates the relationship between Performancebased pay intensity and pay satisfaction. The paper finally discusses the application of the research to organizational compensation management practices and direction of future research in this field.