Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 358

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1B
Chunk 358
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 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
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