You might also want to read this: http://www.amazon.com/Maverick-Ricardo-Semler/dp/0712678867
Many high achievers have an attitude of "achievement for the sake of achievement." Individual rewards crush that spirit.
Joel Spolsky wrote about it on more than one occasion. Here's one link: http://www.joelonsoftware.com/items/2006/08/09.html
A) Punished by Rewards (Alfie Kohn)
B) Herzberg's Motivation-Hygiene Theory (Two Factor Theory). The idea is that a very low salary can lead to dissatisfaction, but increasing the salary beyond the required minimum isn't one of the things that increases happiness. Link: http://www.netmba.com/mgmt/ob/motivation/herzberg/
Capitalism isn't about profits, it's about motivation.
If you think you are awesome, you can give yourself a hefty raise. If your co-workers don't agree though, in a few months you'll be out on the street.
I think it makes sense to share profits equally, since the whole point is that the result was achieved collectively. Salaries can be all over the map.