When someone attempts to compensate for their inadequate/small penis size.
"Look at that guy's huge pick up truck!"
"Yeah, he's obviously trying to compenisate."
When someone does something/buys something/acts in a certain way in order to compensate for a small penis.
Guy A: See that short balding guy with the Ferrari? Yeah, I bet he's compensating for something...
Guy B: That's a great example of compenisation right there.
A way of asking if a person would like company for a period of time
Claudia: Would you like me to compenised you over the weekend?
Kaylee: Fuck yeah cum in my eyes too