It's fully compatible if there is more to life than just this human existence. All religions explain that this is simply one chapter of our existence and if that is the case then there is no lack of compassion when we view this as simply a developmental stage for our future existence. A parent is seen as compassionate if it puts the child through the torture of homework, study and boring learning, simply because they utilise that "suffering" as a means for future rewards in later life chapters.
What we do with this chapter of our existence has been distorted because of the "faith or works" problem in Judeo-Christian thinking.
Religion has always been about deeds first. How man has managed to distort this fact is why the concept of "life after death" is so frowned upon by secular thinking people.
Evil and suffering only exist because of people who do not believe that justice exists within the structure of the universe "when no-one is watching".....and that could be the nominally religious or irreligious. A spiritual education from childhood can instil this belief into all and the results can be remarkable for all.
