Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1610

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 9B
Chunk 1610
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our other executive officers by, among other things:

    ·
    Proposing annual merit increases to the base salaries of the other executive officers;

    ·
    Establishing annual individual performance objectives for the other executive officers and evaluating their performance against such objectives (the Committee reviews these performance evaluations); and

    ·
    Making recommendations, from time to time, for special stock option and restricted stock grants (e.g., for motivational or retention purposes) to other executive officers.

The other executive officers do not have a role
in determining their own compensation, other than to discuss their annual individual performance objectives and results achieved with
the chief executive officer.

Our Overall Approach

The Committee has put into place a compensation
system consisting of three key components: base salary, an annual cash bonus pursuant to an incentive plan, and long-term equity incentives
in the form of stock options.

 55 

The table below provides comparative information
regarding the components of our year 2024 executive compensation program. We are applying the same elements in our executive compensation
program for the year 2025.

    Element
    Form
    Objectives and Basis
  
    Base Salary
    Cash
    ·
    Attract and retain high quality personnel

    ·
    Targeted to be superior to compensation offered by our competitors
  
    Annual Incentive Bonus
    Cash
    ·
    Achieve objectives set annually

    ·
    Annual bonus amount is set and computed as a percentage of base salary

    ·
    Actual payout determined by Company and individual performance

    ·
    Target total cash (base salary + target bonus) designed to be superior to compensation offered by our competitors
  
    Long-Term Incentive
    Stock options
    ·
    Align interests of executives with those of shareholders;
  
    Compensation
     
    ·
    Target long-term incentive award size designed to retain executives through long-term vesting and the potential for wealth accumulation, contingent on benefit to the shareholders

The Committee has from time to time considered
providing additional elements of executive compensation. It has considered elements such as restricted stock awards, restricted stock
units, compensation contingent on a change in control, defined benefit pension plans, deferred cash compensation, and supplemental retirement
plans (supplemental in the sense that they exceed the limits for tax advantaged treatment). To date, the Committee has elected not to
pay compensation in such forms, having determined that the Company’s objectives are better met by one or more of