compensation
Americannoun
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the act or state of compensating, as by rewarding someone for service or by making up for someone's loss, damage, or injury by giving the injured party an appropriate benefit.
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the state of being compensated or rewarded in this way.
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something given or received as an equivalent for services, debt, loss, injury, suffering, lack, etc.; indemnity.
The insurance company paid him $2000 as compensation for the loss of his car.
- Synonyms:
- indemnification, satisfaction, requital, reparation, amends, payment, recompense
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Biology. the improvement of any defect by the excessive development or action of another structure or organ of the same structure.
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Psychology. a mechanism by which an individual attempts to make up for some real or imagined deficiency of personality or behavior by developing or stressing another aspect of the personality or by substituting a different form of behavior.
noun
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the act or process of making amends for something
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something given as reparation for loss, injury, etc; indemnity
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the automatic movements made by the body to maintain balance
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the attempt to conceal or offset one's shortcomings by the exaggerated exhibition of qualities regarded as desirable
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biology abnormal growth and increase in size in one organ in response to the removal or inactivation of another
Other Word Forms
Etymology
Origin of compensation
First recorded in 1350–1400; Middle English compensacioun, from Latin compēnsātiōn-, stem of compēnsātiō “a balancing”; equivalent to compensate + -ion
Explanation
Compensation means "making up for something." When a restaurant offers you a free dessert as compensation for messing up your dinner order, the hope is that you will leave happy (and refrain from writing a negative review online). Compensation can also be money, a payment meant to give someone a fair exchange for their effort and output. In fact, the word comes from the Latin word compensat-, meaning "weighed against." If you receive fair compensation for your work, the money is equal to your time and effort. In other words, the scale is balanced.
Vocabulary lists containing compensation
The Bill of Rights
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"The Monkey's Paw" by W. W. Jacobs
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"The Monkey's Paw," Vocabulary from the short story
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
BlackRock shareholders approved executive compensation plans with 65% of votes, a decline from prior years and below the S&P 500 average.
From The Wall Street Journal • May 20, 2026
That’s long been thought to be compensation for prepayment risk—the risk that the investor will receive less interest back than first appears, because homeowners can pay down their mortgages early.
From The Wall Street Journal • May 20, 2026
That no longer happens automatically: Multiple Listing Services rules have changed so that compensation for buyers’ agents is no longer required to be offered through listings.
From MarketWatch • May 19, 2026
Almost £40 million pounds has been paid out in compensation to more than 5,000 police officers and civilian staff impacted by a 2023 data breach, according to a Belfast law firm.
From BBC • May 19, 2026
Mr. Butterbur paid for it himself, and offered Merry another eighteen pence as some compensation for the lost animals.
From "The Fellowship of the Ring" by J.R.R. Tolkien
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
