A residual current (e.g. common-mode current) may be present in an isolated subsystem. The isolated subsystem may include the secondary winding of a transformer while a first subsystem may include the primary winding of the transformer. The first subsystem may also include a compensation circuit. A driver circuit may generate drive signals provided to the primary winding of the transformer and also to the compensation circuit. The compensation circuit may include a variable capacitor network (e.g. a variable capacitor diode network) that receives the drive signals and also receives a bias voltage, and generates a cancellation signal according to the drive signals and the bias voltage. The compensation circuit may provide the cancellation signal to the ground plane of the isolated subsystem through a capacitor that couples the variable capacitor diode network to the ground plane, in order to reduce or cancel the residual current present in the isolation subsystem.