An LC-based optical device compensates for differences in optical path lengths of polarization components of input beam. As a result, PDL and PMD of the optical device are reduced. The compensation mechanism may be a glass plate that is disposed in an optical path of a polarization component so that the optical path length of that polarization component can be made substantially equal to the optical path length of the other polarization component that traverses through a half-wave plate. Another compensation mechanism is a birefringent displacer that has two sections sandwiching a half-wave plate, wherein the two sections are of different widths and the planar front surface of the birefringent displacer can be positioned to be non-orthogonal with respect to the incident input light beam.