I actually think bonuses and equity grants are terrible for comapany morale. I've seen it many times, and heard many more stories.
On top of the issue in this story, there are others too.
For example, if someone wants to leave, but the bonus or vesting is coming up, they will stay, and you don't want people on a project who don't want to be there.
As another example I know people who work at companies that are going to IPO, and nobody at the company is working at all. They just spend all day thinking about the IPO, and afterwards, checking the stock price.
I don't expect this to be a popular opinion here, but anything outside of a salary for compensation is just a bad idea.
On top of the issue in this story, there are others too.
For example, if someone wants to leave, but the bonus or vesting is coming up, they will stay, and you don't want people on a project who don't want to be there.
As another example I know people who work at companies that are going to IPO, and nobody at the company is working at all. They just spend all day thinking about the IPO, and afterwards, checking the stock price.
I don't expect this to be a popular opinion here, but anything outside of a salary for compensation is just a bad idea.