Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 35

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 35
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 meet our goals, and that the interests of the shareholders
are served.

Charles E. Bradley, Jr. currently serves as both the Chairman of the Board
and our Chief Executive Officer, and is the only member of our Board who is not independent of the Company. The Nominating Committee has
determined that the remaining directors and director nominees are “independent” under applicable independence standards of
the Nasdaq Stock Market. Our Board has chosen not to designate any individual formally as the lead independent director. Each director
retains his full oversight responsibility.

Our Board structure supports the independence of our non-management directors.
Our Audit Committee, Compensation Committee and Nominating Committee are each composed solely of independent directors. Our bylaws provide
that any two directors have the authority to call meetings of the Board, as do specified officers, including the president and the secretary.
To enhance the possible use of that authority by independent directors, the Secretary of the Company is under standing instructions to
call a meeting at the instance of any one director.

The Board believes that combining the Chairman and Chief Executive Officer
positions is currently the most effective leadership structure given Mr. Bradley’s in-depth knowledge of our business and industry
and his demonstrated ability to formulate and implement strategic initiatives. Mr. Bradley is continuously involved in developing and
implementing our strategies, working closely with the Company’s other senior executives to seek continued disciplined growth and
excellence in operations. His close involvement in management places Mr. Bradley in the best position to decide which business issues
require consideration by the independent directors of the Board. In addition, having a combined Chairman and Chief Executive Officer enables
us to speak with a unified voice to shareholders, customers and others concerned with our Company. The Board believes that combining the
Chief Executive Officer and Chairman roles, as part of a governance structure that includes oversight of management responsibilities by
independent directors, provides the preferred system for meeting the requirement that the Company be managed in the best interest of our
shareholders.

Risk Oversight

The Board’s overall responsibility for directing the management of
the Company includes risk oversight. The risk oversight function is performed at the Board level, and by the Audit Committee and Compensation
Committee.

The Board as a whole in its regular meetings discusses and considers the
risk inherent in the existing business of the Company and in proposed initiatives. Because the Company’s business consists of extending
consumer credit to individuals believed to be of higher risk than others (sub-prime credit), the assessment of the risk assumed in such