👉 Compensation is a term used in business and finance to describe the amount of money that one person or entity receives as compensation for a job, service, or other form of payment. It is typically paid to compensate an employee or client for the services provided. For example, if a company pays a CEO $500,000 to lead their team during a difficult period, they are compensating them for their expertise and leadership skills in managing a large team. The compensation is intended to