Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1266

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 1266
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designated specific individual objectives, the Company has implemented an Executive Management Bonus Plan, with annual payouts. Under
the Company’s bonus plan as applied to the year ended December 2024, the Company’s president is eligible to receive a cash bonus
of up to 170% of his base salary and the executive vice presidents are eligible to receive a cash bonus of up to 140% of their base salaries.
The chief executive officer is eligible to receive a cash bonus of up to 600% of his base salary. The Committee is expected to evaluate
each named executive officer’s performance and determine the amount of the Executive Management Bonus Plan award earned by the
end of June 2025.

The Long-Term Incentive
Compensation Element

The Committee may also award incentive and non-qualified
stock options under the Company’s stock option plans. Such awards are designed to assist in the retention of key executives and management
personnel and to create an incentive to create shareholder value over a sustained period of time. The Company believes that stock options
are a valuable tool in compensating and retaining employees. Because the exercise price of all options granted is equal to or above the
fair market value of the Company’s common stock on the date of grant, the option holders may realize value only if the stock price
appreciates from the price on the date the options were granted. This design is intended to focus executives on the enhancement of shareholder
value over the long term.

During the year ended December 31, 2024, the
Committee did not grant stock options to the Company’s executive officers.

Other Elements

The Company also maintains certain broad-based
employee benefit plans, such as medical and dental insurance, and a qualified defined contribution retirement savings plan (401(k) plan),
in which executive officers are permitted to participate. Such officers participate on the same terms as non-executive personnel who meet
applicable eligibility criteria, and are subject to any legal limitations on the amounts that may be contributed or the benefits that
may be payable under the plans. The Company does not maintain any form of defined benefit pension or retirement plan in which
executive officers may participate, nor does it maintain any form of supplemental retirement savings or supplemental deferred compensation
plan.

Exercise of Discretion

In exercising its discretion as to the level of
executive compensation and its components, the Committee considers a number of factors. Members of the Committee conduct informal surveys
of compensation paid to comparable executives within and without the consumer finance industry. The Committee