compensation

noun

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com·pen·sa·tion | \ ˌkäm-pən-ˈsā-shən

, -ˌpen- \

Definition of compensation

1a : the act of compensating : the state of being compensated

b : correction of an organic defect or loss by hypertrophy or by increased functioning of another organ or unimpaired parts of the same organ

c : a psychological mechanism by which feelings of inferiority, frustration, or failure in one field are counterbalanced by achievement in another

2a(1) : something that constitutes an equivalent or recompense Age has its compensations. Moving to the coast had some drawbacks, but there were also compensations.

(2) : payment to unemployed or injured workers or their dependents receiving compensation from his employer

b : payment, remuneration working without compensation

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Examples of compensation in a Sentence

The court awarded the victims millions of dollars in compensation. She offered to pay for lunch as compensation for keeping me waiting. Moving to the coast had some drawbacks, but there were also compensations.

Recent Examples on the Web Most prolific among them is Ferdinand, who has grown his compensation nearly 600% — from $70,000 in 1997 to roughly $500,000 today. — Tyler Wilkins, ajc, "Legislature votes to stop Gwinnett County tax commissioner from nearly doubling salary with fees," 1 Apr. 2021 His adjusted total compensation in 2020 was $2 million, down from $2.1 million in 2019. — Author: Dominic Gates, Anchorage Daily News, "Most Alaska Air executives’ pay in 2020 cut by massive airline downturn," 31 Mar. 2021 Most of those recipients fall below the $150,000 household income limitation, meaning at least some of their compensation would be tax-free and thus affected by any Arizona adjustment. — Russ Wiles, The Arizona Republic, "Arizona hasn't changed its tax code to match new federal laws. That could create 'a mess' for tax returns," 30 Mar. 2021 Front-office head counts have fallen in recent years, and ratios of compensation to total revenue have mostly trended a bit lower. — Telis Demos, WSJ, "All Work and No Play Could Make Wall Street Less Profitable," 29 Mar. 2021 Working mothers were just 25% of the respondents who said they were granted 4-5% of equity as a part of their total compensation, compared to 60% of men with children, according to the report. — Sheryl Estrada, Fortune, "Square CFO Amrita Ahuja is betting big on Bitcoin," 29 Mar. 2021 The comments come as the issue of reparations, which are payments or some form of compensation provided to the descendants of slaves, has gained traction among some on the Left. — Zachary Halaschak, Washington Examiner, "There are 'definitely merits' to reparations, Fed president says," 29 Mar. 2021 Mariota will earn a base salary of $3.5 million, with incentives potentially escalating his compensation to $8 million in 2021. — oregonlive, "Marcus Mariota on why he re-signed with the Las Vegas Raiders: loyalty and stability," 24 Mar. 2021 Ghosn, who led Nissan Motor Co. for nearly two decades, was arrested in November 2018 and later charged with under-reporting his compensation and breach of trust. — Time, "Japan Charges Two Americans With Helping Former Nissan Chairman Carlos Ghosn Flee While on Bail," 23 Mar. 2021

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'compensation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

3 Apr 2021

Cite this Entry

“Compensation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compensation. Accessed 14 Apr. 2021.

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More Definitions for compensation

compensation

noun

English Language Learners Definition of compensation

: something that is done or given to make up for damage, trouble, etc.

: something good that acts as a balance against something bad or undesirable

US : payment given for doing a job

See the full definition for compensation in the English Language Learners Dictionary

compensation

noun

com·pen·sa·tion | \ ˌkäm-pən-ˈsā-shən

Kids Definition of compensation

1 : something that makes up for or is given to make up for something else

2 : money paid regularly When the business was struggling, she worked without compensation.

compensation

noun

com·pen·sa·tion | \ ˌkäm-pən-ˈsā-shən, -ˌpen-

Medical Definition of compensation

1 : correction of an organic defect by excessive development or by increased functioning of another organ or unimpaired parts of the same organ cardiac compensation — see decompensation

2 : a psychological mechanism by which feelings of inferiority, frustration, or failure in one field are counterbalanced by achievement in another

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compensation

noun

com·pen·sa·tion | \ ˌkäm-pən-ˈsā-shən

Legal Definition of compensation

1 : the act of compensating

2 in the civil law of Louisiana : the ending of mutual obligations between two people for money or quantities of fungible things usually by operation of law but sometimes by an agreement

3 : something that makes up for a loss received compensation for the breach of contract specifically : payment to unemployed or injured workers or their dependents — see also unemployment compensation, workers' compensation

4 : payment for a thing of value tendered or a service rendered the Senators and Representatives shall receive compensation for their services — U.S. Constitution art. I

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