This was apparently equally a problem in Linux Mint MATE.

For a discussion and workaround see: 
https://forums.linuxmint.com/viewtopic.php?t=169308 
and 
https://ubuntu-mate.community/t/bottom-panel-problems-with-compiz-ubuntu-mate-16-04-solved/6091/5

Here it is suggested that it was solved in Linux Mint 17.1 (without saying how) 
- could the fix be copied to Ubuntu MATE:
https://github.com/mate-desktop/mate-panel/issues/249


** Bug watch added: github.com/mate-desktop/mate-panel/issues #249
   https://github.com/mate-desktop/mate-panel/issues/249

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https://bugs.launchpad.net/bugs/1579421

Title:
  MATE Panel (inc. Menu) displayed at the top of the screen when using
  the Redmond panel layout and Compiz

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