I obtained this information from CA for my guide. Since it's still a way from publication I thought I'd share it now.
Thanks to Lusted and Craig for providing the info.“Generals’ command stars relate to the morale bonuses a general gets. There are two bonus, a nearby bonus which is big but applied only over a certain distance and an alive bonus which is smaller. Both are increased as a general gains command stars.”
If you want to spread the news around the community please mention the source so people know it's solid.
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