compensation

The definition of compensation is something of value given in exchange for something else.

(noun)

The money a company pays to its employee to do work is an example ofcompensation.
When a person gets into a car accident and injures someone, the money he pays to the injured victim for his losses is an example ofcompensation.

See compensation in Webster's New World College Dictionary

noun

a compensating or being compensated
1. anything given as an equivalent, or to make amends for a loss, damage, unemployment, etc.; recompense
2. payment for services; esp., wages or remuneration
Biol. the counterbalancing of a defect in the structure or function of a part by greater activity in or development of one or more other parts
Psychol. a mechanism by which an individual seeks to make up for a real or imagined psychological defect by developing or exaggerating a psychological strength

Origin: ME compensacioun < L compensatio

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See compensation in American Heritage Dictionary 4

noun

The act of compensating or the state of being compensated.
Something, such as money, given or received as payment or reparation, as for a service or loss.
Biology The increase in size or activity of one part of an organism or organ that makes up for the loss or dysfunction of another.
Psychology Behavior that develops either consciously or unconsciously to offset a real or imagined deficiency, as in personality or physical ability.

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