Splunk are making you complicit in this situation. Personally I would be open with you reports, tell them the company policy, be upfront about it and the fact

Splunk are making you complicit in this situation. Personally I would be open with you reports, tell them the company policy, be upfront about it and the fact you have no choice. Then I would propose a rota so everyone who deserved it would get it equally at some point. Anyone unhappy with the situation can then leave. But everyone would know the that not getting it means fuck all and is just some cooperate bullshit. Or you could quit.