Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1267

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 1267
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 finds these data useful
primarily in evaluating the overall level of compensation paid or to be paid to the Company’s executive officers. Financial factors
considered include earnings, revenue, originations, and budget attainment. Operational factors considered include individual and group
management goals; indicators of the performance and credit quality of the Company’s servicing portfolio, including levels of delinquencies
and charge-offs; and indicators of successful management of personnel, including employee stability. All of such factors are assessed
with reference to the judgment of the Committee as to the degree of difficulty of achieving desired outcomes. With respect to payment
of annual bonuses and grants of stock options, the Committee also takes note of factors relating to the degree of the Company’s success
over the most recent year.

 57 

Specific Objectives
and Evaluation 

In 2024, the Committee
designated specific objectives with respect to the chief executive officer to be accomplished within the year 2024, and fixed weights
to be associated with each such objective. The chief executive officer proposed to the Committee specific annual objectives with respect
to each other executive officer of the Company, which the Committee approved. The Committee anticipates determining the amount of the
Executive Management Bonus Plan award earned by each named executive officer by the end of June 2025.

Grants of Options

The Committee did not award stock options to the
Company’s officers in 2024. 

The
Committee does not have a policy or practice on when to grant option awards. The Committee does
not have a policy or practice of taking into account  material nonpublic information when determining the timing and
terms of option awards, however if a public announcement of material information is anticipated, the grant date of such options may
be deferred at the discretion of the Committee, until after the release
of such information. The
Company does
not time the disclosure of material nonpublic information for the purpose of affecting the value of executive
compensation.

Stock Ownership, Hedging and Pledging

Our Board of Directors and Compensation Committee
have considered whether to establish a minimum stock ownership goal for members of our senior management. We have elected not to do so,
considering that such a policy would either be strict and mandatory, in which case it would undermine the compensatory objectives of our
equity compensation plans, or would be merely hortatory, in which case it could be expected to have little effect. We’ve also noted
that the multiyear vesting terms of the equity incentives granted