A Compensation Analyst is one who does exactly what his designation suggests: Keeping tabs on the compensation inhouse on the same lines as prevalent in other companies of the same industry. He will always be on the lookout as to what is being added / removed from the compensation list as well as be on the alert that no person junior in rank either vertically or horizontally gets more compensation than that of a person senior to him.
Normally, compensation analysts work for very large companies which need to always cross refer what they are paying to people in a similar position across all their group companies, of course, this also depends a lot on the kind of role and responsibility that the particular position entails. Also, we do not seem to have caught up with this kind of specialised role person yet in India.
For details, you can check on either the Workforce website or Google for more details.
In any industry, compensation is always based on a formula based on different parameters like performance, seniority, experience that a person brings to a particular position, the kind of responsibilities that the position entails. No industry worth its salt goes about having a compensation structure in place.
Hope to have clarified your queries. Over to the other members.