A general three-step methodology is presented to optimize contrast when compensating LCoS panels. The first step acts to compensate the in-plane residual retardation, while the second one improves the field of view (FOV) using either MacNeille-type or wire-grid polarizing beamsplitters (PBS). The orientation of the LCoS panel and compensator, relative to the MacNeille PBS, are very critical to achieve good system contrast. The final step is to account for reflections from anisotropic material, which appear as on-state light, limiting contrast.