Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 16

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 16
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 the long-term interests of Participants with those of the Company’s shareholders and (ii) providing both rewards
for exceptional performance and long-term incentives for future contributions to the Company and its Subsidiaries.

If the 2025 Equity Plan is not approved and we
are then unable to offer equity awards as a component of compensation for Participants after April 27, 2026, we will be at a disadvantage
relative to other companies that will be able to offer more attractive and broad-based compensation packages. In such a case, we would
expect to have to utilize a significant portion of additional cash compensation to provide appropriate attraction, retention and motivation
incentives, which would reduce our available cash for other business needs, and therefore adversely impact our growth strategy and competitiveness.
Therefore, the Board recommends that the Company’s shareholders approve the 2025 Equity Plan.

The full text of the proposed 2025 Equity Plan
is set forth on Appendix A to this proxy statement. The material features of the 2025 Equity Plan are summarized below,
but each shareholder should review the 2025 Equity Plan itself for a full understanding of its contents. Capitalized terms used and not
defined in this proposal have the meaning set forth in the 2025 Equity Plan. If our shareholders approve the 2025 Equity Plan, a registration statement on Form S-8 covering certain shares of Common Stock available for issuance will be filed with the SEC.

REASONS TO VOTE FOR THE 2025 EQUITY PLAN

| ̶ | Equity awards are an important component of our compensation program, which allow us to attract and retain the most talented personnel 
 available for positions of substantial responsibility in a competitive market.                                                         |

| ̶ | A reasonable number of shares will be available for grant under the 2025 Equity Plan. |

| ̶ | We have used our equity plans responsibly. |

| ̶ | The 2025 Equity Plan includes reasonable compensation and governance practices that are aligned with similarly situated companies. |

Requested Shares

As of the Record Date, we had 1,501,330 shares
of Common Stock remaining available for grant under the 2006 Equity Plan. As of the Record Date, outstanding stock options under the 2006
Equity Plan covered 6,227,631 shares of Common Stock, which represented approximately 28.2% of our outstanding shares of Common Stock
as of the Record Date. As of the effective date of the 2025 Equity Plan (the “