Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 46

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 46
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 Company does not time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.

Stock Ownership, Hedging and Pledging.

Our Board of Directors and Compensation Committee have considered whether
to establish a minimum stock ownership goal for members of our senior management. We have elected not to do so, considering that such
a policy would either be strict and mandatory, in which case it would undermine the compensatory objectives of our equity compensation
plans, or would be merely hortatory, in which case it could be expected to have little effect. We have also noted that the multiyear vesting
terms of the equity incentives granted under our plans have the effect of aligning our executives’ individual personal financial
incentives with the future price performance of the Company’s stock.

As part of our comprehensive compliance policy, we remind all Company executive
officers of the mandatory legal prohibition on selling short Company shares and the implications of the SEC’s short-swing profit
rule. We also prohibit Company executive officers from entering into transactions that would have the effect of causing those individuals
to benefit from a decline in the price of Company Common Stock, such as the purchase of “put” options. We prohibit such “hedging”
transactions but we do not find it appropriate to prohibit our executive officers from pledging their shares of CPS Common Stock as security
for a loan. We believe that the beneficial incentives of owning Company Common Stock remain substantially the same with or without such
a pledge.

Insider Trading Policy

The Company has adopted an insider trading policy
that governs the purchase, sale, and/or other transactions of our securities by our directors, officers and employees that we believe
is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the applicable exchange listing standards.
A copy of our insider trading policy is filed as Exhibit 19 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
In addition, with regard to the Company’s trading in its own securities, it is the Company’s policy to comply with the federal
securities laws and the applicable exchange listing standards.

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Summary of Compensation

The following table summarizes all compensation earned during the three
fiscal years ended December 31, 2024 by the named executive officers as determined by SEC rules. It lists their names, the principal positions
in which they served in those years, and each component of compensation paid with respect to those years.

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