The act of compensating or the state of being compensated; something, typically money, awarded to someone in recognition of loss, suffering, or injury.

The company offered financial compensation to the employees affected by the layoffs.

Something given or received as an equivalent for services, debt, loss, injury, suffering, lack, etc.; indemnity.

He received a large compensation package after retiring from the company.

The process of counterbalancing or making up for a deficiency or loss.

The athlete's speed was a compensation for his lack of height.

In psychology, a defense mechanism by which a person attempts to make up for perceived deficiencies by emphasizing other traits or achievements.

His constant bragging about his achievements was a compensation for his deep-seated insecurity.

Synonyms

compensationadjective

/ˌkɒmpənˈseɪʃən/

/ˌkɑːmpənˈseɪʃən/

Used attributively before another noun to denote relation to compensation (e.g., compensation package).

Definitions

Relating to or provided as compensation, especially money given for loss or services.

The board discussed the new compensation policy during the meeting.