Nowdays satisfaction employee is the main task for the organization or company must do. Employee is the organization soul. Before go to the customer, organization must pay attention from the internal of their organization, must see the performance of their organization. Organization or company performances depend on the employee. Employee performances depend on the leadership of leader in the organization. Service office of state property and auction (Kantor Pelayanan Kekayaan Negara dan Lelang/KPKNL) has been chosen as the population for the study. Mostly leader that work in Manado comes from outside Manado. New leader, means new style of leadership that can influence the performance of employee. Many aspects will appear comes from employee when they meet with new leader that they dont know about the leader behavior and about leading also it will affect the employee performance. Based on that, Leadership in this case is ethical leadership must prove is leadership of leader that always exchange will affect the performance of employee or not. The study took 30 employees as a sample. The data was analyzed by using multiple regression analysis. The results of this study show that ethical leadership is critical to build or improve the employee performance. Keywords: ethical, leadership, employee performance.