Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 950

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 5
Chunk 950
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 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 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,