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What does overcompensation mean?

Looking for the meaning or definition of the word overcompensation? Here's what it means.

Noun
  1. An excess amount provided in one area in an effort to overcome a perceived lack in another area.
  2. Excessive pay or reward provided for work performed.
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Examples
Under the actuarial present value method, the present value of possible overcompensation is balanced by the present value of possible undercompensation.
In order to be certain that there won't be any possibility for overcompensation, the Commission invites comments on the financing mechanism.
The reason for this is not to disqualify larger installations but to avoid overcompensation of the larger installations.
The radical injustice of early capitalism gave birth to the overcompensation of totalitarian communism.
The nuclear test is, in other words, a rather large example of overcompensation.
This balance is thus taken into account in the calculation of the overcompensation referred to above.

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