Compensatory in this sense is about balance, making things fair or equal, often in work or benefits. She worked overtime, so her boss gave her compensatory days off.
Pro Tip 2/3
Offsetting Loss
Actions are compensatory if they intend to offset or balance out an unwelcome event or situation. After the company's mistake, they offered customers a compensatory discount.
Pro Tip 3/3
Positive Action
Compensatory measures or actions are usually seen as positive because they attempt to correct or improve a situation. Environmental projects can have compensatory benefits to the affected ecosystem.