Here's a pic of one of the gauges. You can see the two different heating coils wrapped around two different "U" shaped bimetallic strips. Interesting to note that internets research indicates that "U" shape is part of the compensation as well. The concept is that the unheated side will compensate some for changes in ambient temperature. "They say" it doesn't get rid of all of the temperature based effects, but it helps some. Between that "U" shape and the compensation stage, the gauges seem to be really stable.
So this is an example of the compensated gauge with the two stages:
And here's a closer-upper pic of the compensation stage showing it's parts:
The switch opens and closes to keep the temperature of the compensation strip at a constant temperature (ave). If you put a Voltmeter on the sender unit, you'll see that it isn't a steady voltage, but is instead a square wave.