The invention is a compensator for minimizing circulatory current losses generated in a winding of an electric machine, the compensator comprising a frame part made of a magnetically conductive material and a winding formed in the frame part, the winding comprising at least one conductor having at least two sub-conductors; and at least one opening in said frame part. Said at least two sub-conductors extend through said at least one opening in such a way that the total current flowing through the opening is substantially zero, when a substantially equal current is led to the sub-conductors; and that at least two different sub-conductors are placed to extend through at least one opening. There is also disclosed an electric machine, the compensator being used in connection with the stator of the electric machine; and a method for forming a compensator to be used for minimizing circulatory current losses generated in a winding of an electric machine.