Step 1: Analyze the pole-zero placement of a lag compensator.
A lag compensator has a transfer function of the form \(G_c(s) = K_c \frac{s+z_c}{s+p_c}\). For a lag compensator, the pole is placed closer to the origin than the zero (\(p_c<z_c\)). This configuration is used to improve steady-state error. Therefore, Statement A is correct and Statement B is incorrect.
Step 2: Analyze the effect of a lag compensator on bandwidth.
The primary effect of a lag compensator is to add attenuation at higher frequencies, which brings the gain crossover frequency down to a point where the phase margin is better. Bringing the gain crossover frequency down means the system's response becomes slower. A slower system response corresponds to a reduced bandwidth. Therefore, Statement C is correct and Statement D is incorrect.
Step 3: Combine the correct statements.
The correct statements are A and C.