Prepare the Compound Butter: In a skillet over medium heat, melt 1 tablespoon of the butter. Add the chopped shallots and sauté until they are soft and translucent, about 3-4 minutes. Pour in the sherry and cook until the liquid reduces by half, about 3-5 minutes. Remove from heat and let cool slightly. In a bowl, combine the remaining 3 tablespoons of softened butter, the cooked shallots, lemon juice, honey, salt, and pepper. Mix until well combined. Shape the mixture into a log, wrap it in plastic wrap, and refrigerate until firm.

Prepare the Steaks: Preheat your grill or a cast-iron skillet over medium-high heat. Rub the steaks with olive oil and season generously with salt and pepper on both sides. Press the garlic chips onto one side of each steak, followed by the fresh thyme leaves.

Cook the Steaks: Place the steaks garlic-chip side down on the grill or skillet. Cook for about 4-5 minutes, or until a nice crust forms. Flip the steaks and cook for an additional 4-5 minutes for medium-rare, or longer to your desired doneness. Remove the steaks from the heat and let them rest for 5 minutes.

Serve: Slice the steaks against the grain. Top each slice with a generous dollop of the sherry-caramelized shallot compound butter. Serve immediately, garnished with additional fresh thyme if desired.