A method and apparatus for stray magnetic field compensation in a non-volatile memory cell, such as a spin-torque transfer random access memory (STRAM). In some embodiments, a first tunneling barrier is coupled to a reference structure that has a perpendicular anisotropy and a first magnetization direction. A recording structure that has a perpendicular anisotropy is coupled to the first tunneling barrier and a nonmagnetic spacer layer. A compensation layer that has a perpendicular anisotropy and a second magnetization direction in substantial opposition to the first magnetization direction is coupled to the nonmagnetic spacer layer. Further, the memory cell is programmable to a selected resistance state with application of a current to the recording structure.