Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 45

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 45
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 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 Compensation Committee considers a number of factors. Members of the Compensation Committee conduct informal surveys
of compensation paid to comparable executives within and without the consumer finance industry. The Compensation Committee 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 may 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 Compensation Committee as to the degree of difficulty of achieving desired outcomes.
With respect to payment of annual bonuses and grants of stock options, the Compensation Committee also takes note of factors relating
to the degree of the Company’s success over the most recent year.

Specific Objectives and Evaluation

In 2024, the Compensation 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 Compensation Committee specific annual objectives with respect to each other executive officer
of the Company, which the Compensation Committee approved. These objectives and the Compensation Committee’s administration of the
annual incentive bonus element of compensation are discussed in detail below, under the heading ” – Grants of Plan-Based Awards
in 2024 – Executive Management Bonus Plan.”

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Grants of Options

The Compensation Committee did not award stock options to the Company’s
officers in 2024. In determining not to make such grant, the Compensation Committee considered the various factors noted above
with respect to option grants generally.

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, howeverif 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