[thrwn_frthr_awy]

They aren’t mutually exclusive. I’ve worked at a large company that allowed peers to give small, cash bonuses to other engineers.

[dredmorbius]

What possible justification is there for other employees at a company to compensate their co-workers, rather than the company itself (and hence: its shareholders)?

[thrwn_frthr_awy]

I’m not sure I follow. We had great salaries with both generous cash and rsu bonuses as well. This was an extra benefit that allowed you to recognize peers with cash bonuses as well.

[dredmorbius]

Were employee-initiated bonuses paid out of an employer fund then?

That is effectively removing the gatekeeping role of a manager (often an unjustified bar to reward) from bonus decisions.

It ... might lead to other issues, though on balance would probably be an improvement.