Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1265

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 1265
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 of base salary or in the form of bonus compensation. In particular with respect
to plans for deferred compensation, the Committee believes those make sense for the Company and for the recipient only on the basis of
assumptions regarding future tax rates payable by each. Having no assurance that such assumptions would be correct, the Committee has
chosen not to put into place any special deferred compensation programs for the company’s executive officers. Those officers do
participate in a Company-sponsored tax-deferred savings plan, commonly known as a 401(k) plan, on the same terms available to Company
employees generally.

The Committee may in the future revisit its conclusions
as to any of the components discussed above, or may consider other forms of compensation.

The Base Salary Element

With respect to the retention objective, the Committee
considers an executive’s base salary to be the most critical component. Acting primarily on the basis of recommendations of the Chief
Executive Officer, the Committee adjusts other officers’ base salaries annually, with the adjustment generally consisting of a 2% to 10%
increase from the prior year’s rate. Where exceptional circumstances apply, such as recruitment of a new executive officer, a promotion
to executive officer status or a special need to retain an individual officer, the chief executive officer may recommend, and the Committee
may approve, a larger increase.

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The Company’s general approach in setting
the annual compensation of its named executive officers is to set those officers’ base compensation by reference to their base rates
for the preceding year. During the year ended December 2024, the Company’s chief executive officer, Charles E. Bradley, Jr., received
$995,000 in base salary. In setting that rate in 2024, the Committee considered the base salary rate that the Company had paid in the
prior year ($995,000), the desirability of providing an annual increase, the desirability of ensuring retention of the services of the
Company’s incumbent chief executive officer, the Company’s financial performance, and the levels of chief executive officer
compensation prevailing among other financial services companies. The Committee considered whether to adjust officers’ base compensation
for 2024, and determined to increase the base rate for the President and Chief Financial Officer by 4%.

The Annual Incentive
Bonus (Executive Management Bonus Plan) Element

To encourage executive officers and key management
personnel to exercise their best efforts and management skills toward causing the Company to meet its overall objective, and toward achieving