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Supervisor bottom line mentality (SBLM) is common in environments of high pressure banking. Its impact on the managerial performance is under explored. This study examines the impact of SBLM on managerial performance in terms of reward perceptions and examines whether leader member exchange (LMX) moderates the indirect effect of SBLM on managerial performance. A quantitative, cross sectional design was used. Data were gathered from 350 managers from five major banks of Pakistan (HBL, UBL, MCB, ABL and another leading bank). Validated scales measured SBLM, reward perceptions, managerial performance and LMX. Partial least squares structural equation modeling (PLS SEM) was conducted to test the moderated mediation model. SBLM was found to be negatively related to managerial performance and managerial reward perceptions. Reward perceptions were found to be positively related to managerial performance. Reward perceptions mediated the SBLM performance relationship. The SBLM reward perceptions link was moderated by LMX, reducing the effect negatively. The indirect effect of SBLM on performance through reward perceptions was less when LMX was high, establishing the concept of moderated mediation. All hypotheses were confirmed. SBLM decreases managerial performance by decreasing perceptions of rewards. High quality LMX acts as a buffer to reduce this deleterious cascade. This study combines LMX theory with the effort reward imbalance framework, identifying reward perceptions as a novel mechanism of the link between SBLM and performance, and providing evidence for the protective role of LMX. It goes beyond direct negative behaviors as research by SBLM and extends to performance outcomes in a nonwestern banking context.

Key Words: Supervisor Bottom Line Mentality, Reward Perceptions, Managerial Performance, Leader Member Exchange, Banking Sector, Pakistan.