Recompense

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DEFINITION of 'Recompense'

The act of awarding a target person, group or entity some form of monetary benefit as a result of the target performing some action or as a result of some action happening to the target. This is one of the main tenets of capitalism, as people perform a task as a result of being paid some sort of relevant incentive.

INVESTOPEDIA EXPLAINS 'Recompense'

For example, companies may pay its workers with a special cash bonus as a result of the workers' efforts in contributing to the company's profits. However, a company may have to pay a compensation as a result of an injury that happened to the worker as a result of the company's negligence.

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