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They may not qualify as cushy management bonuses, but new Long Island Power Authority boss John McMahon recently handed out $50 bills at a staff meeting to boost morale.

The former Con Ed executive, according to sources, took a wad of cash out of his pocket and began giving each staffer a $50 bill suggesting they go to dinner on him.

McMahon’s gesture came as the embattled public utility has been under fire for its storm response and faces the prospect of being largely dismantled under plans laid out by Gov. Andrew Cuomo.

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Mark Gross, a LIPA spokesman, did not respond to questions about details, and acknowledged McMahon’s payments but said he was using “his own personal money.”

McMahon, a lawyer, makes $275,000 a year as LIPA’s chief operating officer. He most recenly had worked as chief executive of Orange and Rockland Utilities, a subsidiary of ConEd where he worked for 37 yerars. In 2010, the year before he retired from Con Ed, McMahon’s total compensation was $5.2 million.