1. Some champions can only be recruited by those of high charisma
2. Charisma affects the loyalty of your champions
3. Charisma affects the maximum number of champions that you can recruit
4. Charisma affects your ability to rally a paniced unit in tactical combat
5. Charisam affects your chance to secure a diplomatic agreement
6. Charisma can trigger/affect quests.

1. Some champions can only be recruited by those of high charisma.

Example:

• Ablog the Merchant can be recruited by any sovereign with charisma of >= 0
• Firty the Swordmaster (level 3) can only be recruited by a sovereign of Charisma 15+Charisma
• Foar the Wraith (Empire) can be recruited by a Kingdom sovereign of 20+ Charisma, and an Empire Sovereign of >=0 Charisma

2. Charisma affects the loyalty of your champions

If a town falls to the enemy the champions under your employ have a chance to leave your service. This chance is reduced by the Sovereign's Charisma rating.

Example:

Sovereign with Charisma 10 has 2 champions and one of his "native" (no check if a captured town falls to the enemy) towns falls to the enemy. Each champion has a base 30% to leave the service of his sovereign This chance is reduced by 1% per charisma rating + 2%x number of towns controlled by a sovereign. This mechanic reflects the fact that the loss of a single town in a large empire is less than the same effect in a smaller empire.

Sovereign of charisma 10 controlling 5 towns = 10% for a champion to leave his service if a town falls to the enemy
Sovereign of charisma 10 controlling 10 towns = 0% for a champion to leave his service if a town falls to the enemy
Sovereign of charisma 10 controlling 2 towns = 16% for a champion to leave his service  if a town falls to the enemy
Sovereign of charisma 10 controlling 0 towns = 20% for a champion to leave his service if his only town falls to the enemy 

Sovereign of Charisma 24 controlling 3 towns = 0% for a champion to leave his service if a town falls to the enemy. 

3. Charisma affects the maximum number of Champions that you can recruit

A Sovereign can recruit 1 champion for every two points of Charisma

Example:

• 10 points of Charisma = Max 5 Champions
• 20 points of Charisma = Max 10 Champions
• 30 points of Charisma = Max 15 Champions

4. Charisma affects your ability to rally a paniced unit in tactical combat

In battle a unit may panic due to injuries suffered or magic (i.e. Fear Spell). A sovereign or champion can use 1 action point and attempt to rally such a unit. The chance is 5% per charisma point.

Example: An enemy sovereign casts fear upon your swordsmen unit. A sovereign of Charisma 14 has a 70% (14 x 5%) to rally these troops and break the fear spell.

Example: A peasant unit has suffered 50% damage and panics (50% for militia, 20% for Veteran troops, 10% for Expert Troops, 0% for Elite Troops, 0% for Champions), attempting to flee the battle field. A sovereign of Charisma 10 has a 50% to rally these paniced troops and end the panic effect.

6. Charisma can trigger/affect quests.

A retired warrior will only reveal the location of a magical sword to those of Charisma 20+.