It was revealed earlier this month that the government's intelligence service GCHQ was offering retention payments to prevent technology experts leaving for big private firms.

Then there are retention payments of $1.39 million earmarked for seven top executives, excluding Mr. Tilton.

Creditors recently approved a $250,000 retention payment for him after severance payments were denied to hundreds of former employees, according to a recent bankruptcy court filing.

Within this overall reduction there have been a small number of retention payments made to key talent where replacing them externally would come at a substantially higher price.

However, there are special rules that apply to retention payments generally.

The school said Meyer would receive a six-year contract that pays $4 million annually, plus another $2.4 million total in "retention payments."

You apply the same VAT rate to retention payments as that applied to previous payments made under the contract.

Further information on retention payments can be found at paragraph 22.1.2.

In 2001, the directors gave him $5 million as a retention payment, even though Mr. Grasso has said for years that he had never worked anywhere else and never would.

"We have all agreed to give up these retention payments in order to give our employees confidence in management's ongoing commitment to share sacrifice," Mr. Carty said.