"to compensate it" is correct and usable in written English.
You can use it when you need to offer something in exchange for a misfortune or inconvenience. For example, "I'm sorry I couldn't make it to your going-away party. To compensate it, I'll take you out for dinner this weekend."
In February, WilmerHale agreed to pay $18 million to the Medicines Company to compensate it for its legal and lobbying costs.
Ecuador's proposal to leave an estimated 846m barrels of oil in the ground under the Ishpingo-Tambococha-Tiputini (ITT) area of the Yasuni national park in the Amazonian rainforest and ask the world to compensate it with half its monetary value was hailed as a revolutionary new idea when it was agreed by president Correa in 2007.
Backed by the British, the Dutch and the Nordic countries, the World Bank has successfully convinced its donors to compensate it for writing off loans it could not have collected in full.
The other section invests the papal "nest-egg": the cash Italy's fascist dictator, Benito Mussolini, gave the papacy in 1929 to compensate it for the loss of its territories.
Well, now Iceland's president is refusing to sign into law a $5bn£3bnbn) package to compensate it and other governments before putting it to voters in a referendum.
Unless the UK government is prepared to compensate it, a bill that could top £350m a year, it cannot make new investments.
A public backlash forced it to compensate those it overcharged.
"I think we'll be able to compensate for it and overcome it," Phillips said.
"We're trying to make it elaborate to compensate that it's on a Wednesday night," said Kimberly O'Toole, the junior class president.
"If you have a problem with the early state primary system you need to change it, not try to compensate for it," he adds.
It is a way to compel a company to compensate those it has injured and to discourage it from doing future harm.
