Compensation Definition & Meaning

American

British

Other Word Forms

Etymology

Examples

Related Words

Synonyms compensation American [kom-puhn-sey-shuhn] / ˌkɒm pənˈseɪ ʃən /

noun

1. 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.

2. the state of being compensated or rewarded in this way.

3. 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

4. Biology. the improvement of any defect by the excessive development or action of another structure or organ of the same structure.

5. 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.

compensation British / ˌkɒmpɛnˈseɪʃən /

noun

1. the act or process of making amends for something

2. something given as reparation for loss, injury, etc; indemnity

3. the automatic movements made by the body to maintain balance

4. the attempt to conceal or offset one's shortcomings by the exaggerated exhibition of qualities regarded as desirable

5. biology abnormal growth and increase in size in one organ in response to the removal or inactivation of another

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Other Word Forms

• compensational adjective
• noncompensation noun
• precompensation noun
• procompensation adjective
• subcompensation noun
• subcompensational adjective

Etymology

Origin of compensation

First recorded in 1350–1400; Middle English compensacioun, from Latin compēnsātiōn-, stem of compēnsātiō “a balancing”; equivalent to compensate + -ion

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.

More than a year ago, Johnson told employees that those who stay until the last day of the Apple program will be eligible for a lump-sum payment equal to their 2023 compensation.

From The Wall Street Journal

Several oil companies sought compensation through international tribunals and arbitrators.

From Los Angeles Times

“We recognize there may be questions about how this policy holds a returning player accountable, especially after earning substantial compensation elsewhere,” Rolapp added.

From The Wall Street Journal

"The compensation is important, it's significant, but it's insufficient," she told the British broadcaster.

From Barron's

That is 20% more than the median pay for experienced CEOs in the S&P 500, according to a Journal analysis of executive compensation data.

From The Wall Street Journal

Related Words

• allowance
• benefit
• bonus
• coverage
• earnings
• fee
• indemnity
• pay
• payment
• payoff
• premium
• profit
• redress
• reimbursement
• remittance
• remuneration
• reparation
• restitution
• reward
• salary

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.