Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 40

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 40
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, and in the proxy statement for the Company’s
2025 annual meeting of shareholders.

THE COMPENSATION COMMITTEE

| Daniel S. Wood (chairman) | William W. Grounds | William B. Roberts |

| 24 |

Compensation Discussion and Analysis

2024 Say-on-Pay Advisory Vote Outcome

The Compensation Committee annually considers the results of the most recent
advisory vote by shareholders to approve executive officer compensation. In the 2024 advisory vote, a majority of the voted shares (92%)
approved of the compensation of our named executive officers. The Compensation Committee interprets that vote as a reason to retain the
existing design, purposes and structure of our executive compensation programs. The Compensation Committee will continue to consider the
results from future shareholder advisory votes regarding executive officer compensation in its future administration of executive compensation.

Compensation Objectives

The Company’s objectives with respect to compensation are several. The
significant objectives are to cause compensation (i) to be sufficient in total amount to provide reasonable assurance of retaining key
executives, (ii) to include a significant contingent component, so as to provide strong incentives to meet designated Company objectives,
and (iii) to include a significant component tied to the price of the common stock, so as to align management’s incentives with
shareholder interests. The Compensation Committee is charged with administering the Company’s compensation plans to meet those objectives.
To the extent that elements of compensation would not advance such objectives, or would do so less effectively than would other elements,
the Compensation Committee seeks to avoid paying compensation in those forms.

Role of the Compensation Committee and the Chief Executive Officer

Our Board has authorized the Compensation Committee, which is composed
solely of independent directors, to make all decisions regarding executive compensation, including administration of our compensation
plans. In that regard, the Compensation Committee:

| · | Reviews and discusses with management the factors underlying our compensation policies and decisions, including overall compensation objectives;                                                                                |
| · | Reviews and approves all Company goals and objectives (both financial and non-financial) relevant to the compensation of the Chief Executive Officer;                                                                           |
| · | Evaluates, together with the other independent directors, the performance of the Chief Executive Officer in light of these goals and objectives and that individual’s overall effectiveness;                                    |
| · | Fixes and approves each element of the compensation of the Chief Executive Officer;                                                                                                                                             |
| · | Reviews the performance evaluations of all other members of executive management (the Chief Executive Officer prepares and presents to the Compensation Committee