What does "compensation" mean?

Native speaker’s answer
Rebecca
"Compensation" is usually a monetary payment awarded to someone who has suffered, lost something, or been injured in some way. Basically, it's a payment received for being harmed or negatively impacted in some way. Ex: The woman demanded $1 million in compensation for being hit by a stranger's car. Ex: My package arrived damaged, so the company gave me $100 as compensation.