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The use of "is compensated with" is correct and usable in written English.
This is used when someone or something is given something to make up for or as payment for something else. For example, "His hard work is compensated with recognition from his peers."
Exact(33)
Although we cannot conclude that these correlations reflect causality, we can provide indirect evidence of this compensation mechanism (i.e., a relative defect is compensated with a quality) by looking at the relationship between individuals' hours of work and measures of the distribution of attractiveness in the population.
The private equity firm is compensated with this alignment of interest in mind.
The agreement in late July which settled the strike does not punish teams that sign free agents; instead the team losing a free agent is compensated with a player from a pool drawn from all clubs.
The steep learning curve is compensated with the depth of settings and options offered.
A pixel a in the occlusion region is compensated with four interpolated pixels from four directions.
Whether the post is compensated with cash or with free product or rewards, the FTC views them equally.
Similar(27)
All real system impairments mentioned above are compensated with AGC, carrier frequency offset compensation, time synchronization, and phase tracking algorithms.
Some landless peasants who are compensated with storefronts as a form of compensation will become small business owners.
The workers are compensated with cellphone airtime.
They demoralize employees who are compensated with stock.
If honor and dignity cannot be bought and sold, can their loss be compensated with money?
More suggestions(18)
is adjusted with
is repaid with
is countered with
is filled with
is recovered with
is counteracted with
is funded with
is reimbursed with
is counterbalanced with
is mitigated with
is covered with
is supplemented with
is owed with
is matched with
is met with
is neutralised with
is offset with
exactly compensated with
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com