to compensate or reward excessively; overpay: Some stockholders feel the executives are being overcompensated and that bonuses should be reduced.

to exhibit psychological overcompensation; strive to overcome a sense of inferiority through overt, opposite behavior: The aggressive patient may be overcompensating, and be a profoundly shy person beneath the façade.

to compensate (a person or thing) excessively

(intransitive) (psychol) to engage in overcompensation