If no, how were their servants compensated?
Depends where you were. Italian nobles, or the class that were described as the popolo grasso in Italy owned slaves. It should be noted that this slavery was very gendered. Although male slaves existed, Italian nobles liked female Balkan slaves as house servants. Steven Epstein wrote a book about medieval Italian slavery called Speaking of Slavery.
There were also significant slave markets in the kingdom of Aragon. Theres a book about the slave market in Valencia, I can dig the citation up if you're interested. Slavery was also present in mallorca and southern France.