This article considers the design of finite-dimensional compensators for distributed-parameter systems using eigenvalue assignment. The proposed compensator consists of an observer estimating additional outputs and a static feedback of the measurable and the estimated outputs. Since the additional outputs can be asymptotically reconstructed, the compensator can be designed using the separation principle, i.e. the closed-loop eigenvalues are given by the observer eigenvalues and the eigenvalues resulting from the static output feedback control. In order to solve the corresponding eigenvalue assignment problem, the parametric approach for the design of static output feedback controllers in finite-dimensions is extended to distributed-parameter systems. By using a parameter optimisation it is possible to assign all closed-loop eigenvalues within specified regions of the complex plane in order to stabilise the system and to assure a desired control performance. A heat conductor is used to demonstrate the proposed design procedure.