diff --git a/src/ng/compile.js b/src/ng/compile.js
index 3aae716cbaa7..98c233206f65 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -942,7 +942,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
    *      registered controller} if passed as a string. An empty `noop` function by default.
    *    - `controllerAs` – `{string=}` – identifier name for to reference the controller in the component's scope.
    *      If present, the controller will be published to scope under the `controllerAs` name.
-   *      If not present, this will default to be the same as the component name.
+   *      If not present, this will default to be `$ctrl`.
    *    - `template` – `{string=|function()=}` – html template as a string or a function that
    *      returns an html template as a string which should be used as the contents of this component.
    *      Empty string by default.
@@ -967,7 +967,6 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
    *      See {@link ng.$compile#-bindtocontroller- `bindToController`}.
    *    - `transclude` – `{boolean=}` – whether {@link $compile#transclusion content transclusion} is enabled.
    *      Disabled by default.
-   *    - `isolate` – `{boolean=}` – whether the new scope is isolated. Isolated by default.
    *    - `restrict` - `{string=}` - a string containing one or more characters from {@link ng.$compile#-restrict- EACM},
    *      which restricts the component to specific directive declaration style. If omitted, this defaults to 'E'.
    *    - `$canActivate` – `{function()=}` – TBD.
@@ -982,21 +981,21 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
    * directives. Component definitions usually consist only of a template and a controller backing it.
    *
    * In order to make the definition easier, components enforce best practices like use of `controllerAs`,
-   * `bindToController` and default behaviors like **isolate scope** and restriction to elements.
+   * `bindToController`, **isolate scope** and default behaviors like restriction to elements.
    *
    * Here are a few examples of how you would usually define components:
    *
    * ```js
    *   var myMod = angular.module(...);
    *   myMod.component('myComp', {
-   *     template: '<div>My name is {{myComp.name}}</div>',
+   *     template: '<div>My name is {{$ctrl.name}}</div>',
    *     controller: function() {
    *       this.name = 'shahar';
    *     }
    *   });
    *
    *   myMod.component('myComp', {
-   *     template: '<div>My name is {{myComp.name}}</div>',
+   *     template: '<div>My name is {{$ctrl.name}}</div>',
    *     bindings: {name: '@'}
    *   });
    *
@@ -1067,11 +1066,11 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
       var template = (!options.template && !options.templateUrl ? '' : options.template);
       return {
         controller: options.controller || function() {},
-        controllerAs: identifierForController(options.controller) || options.controllerAs || name,
+        controllerAs: identifierForController(options.controller) || options.controllerAs || '$ctrl',
         template: makeInjectable(template),
         templateUrl: makeInjectable(options.templateUrl),
         transclude: options.transclude,
-        scope: options.isolate === false ? true : {},
+        scope: {},
         bindToController: options.bindings || {},
         restrict: options.restrict || 'E'
       };
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 1fddc9f35196..884f6c8846c4 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -9333,7 +9333,7 @@ describe('$compile', function() {
       inject(function(myComponentDirective) {
         expect(myComponentDirective[0]).toEqual(jasmine.objectContaining({
           controller: jasmine.any(Function),
-          controllerAs: 'myComponent',
+          controllerAs: '$ctrl',
           template: '',
           templateUrl: undefined,
           transclude: undefined,
@@ -9352,7 +9352,6 @@ describe('$compile', function() {
         template: 'abc',
         templateUrl: 'def.html',
         transclude: true,
-        isolate: false,
         bindings: {abc: '='},
         restrict: 'EA'
       });
@@ -9364,7 +9363,7 @@ describe('$compile', function() {
           template: 'abc',
           templateUrl: 'def.html',
           transclude: true,
-          scope: true,
+          scope: {},
           bindToController: {abc: '='},
           restrict: 'EA'
         }));