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Local authority: Morale aura.

Replaces the retinue gaining permanent morale bonuses with an improving massive aura around the retinue leader based on authority.

All characters gain encourage.
Encourage effect is equal to 2 + bonus provided by authority.
Encourage applies at full effect within a massive radius, then falls off linearly as the units pass further away from the retinue leader.

This creates an incentive to keep your characters close to their retinues, else the men have just a normal morale level for a troop of their type. The radius is very forgiving, so units don't quite have to be on top of it, but you definitely don't want to hold the line without your character leading the retinue.