Distributing Bonus to Agile Teams is Like Playing with Dynamite

I've always found that team bonuses work best where there is no cash component: e.g. a night for 2 in a hotel, a new foosball table, whatever. These types of bonuses reinforce the team.

Individuals should be rewarded for an exceptional contribution in whatever way seems appropriate and this is usually best not disclosed to other team members. Note: there is nothing exceptional in putting one's own goals ahead of the team.