What is the best definition for the word compensatory?

The term "compensatory" refers to something that serves to make up for a deficiency or loss. In various contexts, such as finance, medicine, or law, compensatory actions or measures are those that aim to offset or counterbalance a negative effect or shortfall. For example, in a legal sense, compensatory damages are awarded to compensate a victim for losses or injuries suffered due to someone's negligence.

The definition "offsetting" aligns perfectly with this understanding, as it implies the act of counterbalancing or providing a means of making up for something that is missing or lacking. In contrast, the other terms do not capture this essence: “corrupted” suggests moral or ethical degradation, “varying” indicates diversity or change, and “contradictory” describes opposing ideas without the nuance of compensating for a loss or deficiency. Thus, "offsetting" is the most appropriate choice in capturing the core meaning of "compensatory."