Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 34

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 34
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 The Board continues to believe that holding an advisory vote on executive compensation
every year is the most appropriate policy for the Company at this time, and recommends that shareholders vote for future advisory votes
on executive compensation to occur every year. While the Company’s executive compensation programs are designed to promote a long-term
connection between pay and performance, the Board recognizes that executive compensation disclosures are made annually. Holding an annual
advisory vote on executive compensation provides the Company with more direct and immediate feedback on our compensation disclosures.
However, shareholders should note that because the advisory vote on executive compensation occurs well after the beginning of the compensation
year, and because the different elements of our executive compensation programs are designed to operate in an integrated manner and to
complement one another, in many cases it may not be appropriate or feasible to change our executive compensation programs in consideration
of any one year’s advisory vote on executive compensation by the time of the following year’s annual meeting of shareholders.
We believe that an annual advisory vote on executive compensation is consistent with our practice of seeking input from our shareholders
on corporate governance matters (including the Company’s practice of having all directors elected annually and annually providing
shareholders the opportunity to ratify the Audit Committee’s selection of independent auditors) and is consistent with our executive
compensation philosophy, policies and practices.

This advisory vote on the frequency of future advisory votes on executive
compensation is non-binding on the Board. Shareholders will be able to specify one of four choices for this proposal on the proxy card:
one year, two years, three years or abstain. Shareholders are not voting to approve or disapprove the board’s recommendation. Although
non-binding, the Board and the Compensation Committee will review the voting results. Notwithstanding the Board’s recommendation
in this year’s proxy statement and the outcome of the shareholder vote, the Board may in the future decide to conduct advisory votes
on a more or less frequent basis and may vary its practice based on factors such as discussions with shareholders and the adoption of
material changes to compensation programs.

<div align='center'>THE BOARD RECOMMENDS THAT SHAREHOLDERS VOTE TO CONDUCT FUTURE ADVISORY VOTES ON NAMED EXECUTIVE OFFICER COMPENSATION EVERY YEAR.</div>

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<div align='center'>INFORMATION REGARDING THE COMPANY</div>

Management Structure

The Board is responsible for overseeing the management of the Company.
Its oversight is aimed at seeing to it that the Company’s business is managed to