Although I've had great fun playing this game, I can't take credit for starting it. I don't know what the rules are, (or even if there ARE rules) so I'd say go for it with compound words! As long as one of the words has 5 letters - or together they equal 5 letters- it sounds like it's compatible with the intent of the game.
@Alright Thank you for being willing to share your aversion to compound words. I'll admit, they pose a unique challenge: do we count compound words that are separate (ice cream) joined (bookworms) or hyphenated? I guess we just work with whatever is offered.