Based on the earnest way in which it was asked, I don’t think the employee asking knew that the manager wasn’t supposed to be doing that - they thought it was a legitimate incentive approved by the company.

As far as I know the company didn’t try going after the manager about it, but it’s possible I wouldn’t have known about that. I only know the above because I was working in that room re-configuring some tech stuff that needed to be fixed ASAP, while the meeting was happening.