Reserves are also retained to pay for for unexpected events such as a flu pandemic or a foot and mouth outbreak.

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Many of the ones that retained it cut pay instead.

ECONOMIST: Patients or profits?

In the past many owners of C corps have retained earnings, rather than pay them out as dividends taxed at a 38.6% rate.

FORBES: Corporate Choice

New accounting rules demand that they start valuing their equity portfolios at market value at the end of this month, which could constrain their ability to pay dividends out of retained earnings.

ECONOMIST: Stockmarkets

And with the right incentives, the retained better things are so much better that they pay for all the other new worse things.

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However, the restructuring plan also includes pay cuts of between a quarter and a third for the staff being retained.

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