In one embodiment, a top drive system includes a quill; a motor operable to rotate the quill; a gripper operable to engage a joint of casing; a connector bi-directionally rotationally coupled to the quill and the gripper and longitudinally coupled to the gripper; and a compensator longitudinally coupled to the quill and the connector. The compensator is operable to allow relative longitudinal movement between the connector and the quill.