A compensating link arrangement is operatively associated with one of two blades in a shear assembly. The angular position of the links may be selectively adjusted to alter a horizontal force component that counteracts a separation force associated with the blades during a cutting stroke. Additionally, a preload bias is provided by a spring to urge the blades together during the cutting stroke. The preload bias minimizes the gap between the cutting blades and provides a precise, burr-free cut of a work material. According to one arrangement, the compensating links are disposed on the lower blade or bed knife. Providing the compensating links on the bed knife is particularly useful in a servo-controlled version of the shear assembly since inertial forces associated with the servo-controlled, movable blade do not affect the bed knife.