Peace be upon you. The distinction between reward and compensation can be summarized as follows: 1) Compensation is associated with actions before they are performed, as one might say, 'I will not act until I receive my compensation,' whereas reward is only given after the action is completed. 2) In common understanding, reward is specifically linked to the blessings for good deeds stemming from true beliefs, righteous actions, and patience in their appropriate contexts, such that it is generally understood to mean this. On the other hand, compensation pertains to physical acts of obedience. This is supported by a saying of the Commander of the Faithful, peace be upon him, to one of his companions who was ill: 'May Allah turn your complaints into a reduction of your sins.' Illness itself does not yield compensation, but it does reduce sins, akin to shedding leaves. Compensation is found in spoken words and actions performed by hands and feet. May you be successful in all that is good.