com·pen·sa·tion /ˌkäm-pən-'sā-shən/ n
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 usu. by operation of law but sometimes by an agreement
3: something that makes up for a loss
received compensation for the breach of contract; specif: 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
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.