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Purpose- The paper examined the role of compensation practices on job satisfaction of faculty members in private institutions of higher learning in Saudi Arabia. The paper also examined the mediating role of talent management in the relationship between compensation practices and job performance.Methodology/Approach- A descriptive research design method was applied in the study. The paper is focused on review of previous studies from online data bases and periodicals on the paper variables and resultant relationships. Literature acknowledged the effect of compensation practices on job satisfaction. The paper explained the importance of compensation practices on job satisfaction and the mediating role of talent management. Equity theory was used as the underpinning theory of this paper.Findings- The paper found that compensation practice mediated by talent management is important to increase job satisfaction of faculty members of newly established private institutions of higher learning particularly in Saudi Arabia.Implication/Contribution- The paper provides opportunity for scholars to test the proposed framework empirically. The paper can serve as guide for human resource personnel in newly established private institutions of learning in increasing faculty member’s job satisfactions. The paper adds to body of existing literature on compensation practices, job satisfaction and talent management with focus on newly established private institution of learning in Saudi Arabia.