Excess cash flow can be a distraction and can cause carelessness with acquisition strategies. Excess cash also allow the organization to purchase companies that will complement the overall goals of the organization. Companies with excess cash are less likely to be purchase or hijacked by cash cow organizations.
Employees are motivated differently, and often times additional pay has not proven to produce more quality production and outcomes. While I do support employee bonuses and recognition I do believe excess cash should be use to increase other assets including its employees. What physical assets can be used to increase the shareholder's profitability?