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Latent factor models are the dominant backbones of contemporary recommender systems (RSs) given their performance advantages, where a unique vector embedding with a fixed dimensionality (e.g., 128) is required to represent each entity (commonly a user/item). Due to the large number of users and items on e-commerce sites, the embedding table is arguably the least memory-efficient component of RSs. For any lightweight recommender that aims to efficiently scale with the growing size of users/items or to remain applicable in resource-constrained settings, existing solutions either reduce the number of embeddings needed via hashing, or sparsify the full embedding table to switch off selected embedding dimensions. However, as hash collision arises or embeddings become overly sparse, especially when adapting to a tighter memory budget, those lightweight recommenders inevitably have to compromise their accuracy. To this end, we propose a novel compact embedding framework for RSs, namely Compositional Embedding with Regularized Pruning (CERP). Specifically, CERP represents each entity by combining a pair of embeddings from two independent, substantially smaller meta-embedding tables, which are then jointly pruned via a learnable element-wise threshold. In addition, we innovatively design a regularized pruning mechanism in CERP, such that the two sparsified meta-embedding tables are encouraged to encode information that is mutually complementary. Given the compatibility with agnostic latent factor models, we pair CERP with two popular recommendation models for extensive experiments, where results on two real-world datasets under different memory budgets demonstrate its superiority against state-of-the-art baselines. The codebase of CERP is available in https://github.com/xurong-liang/CERP.