Yes, COMPENSATE is a Scrabble word!

Letter values in Scrabble US: C 3, O 1, M 3, P 3, E 1, N 1, S 1, A 1, T 1, E 1.

Is it a valid word?

COMPENSATE is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

adjust for
make amends for; pay compensation for
make up for shortcomings or a feeling of inferiority by exaggerating good qualities
make reparations or amends for
do or give something to somebody in return
make payment to; compensate

Also: make up, even out, even off, even up, pay off.