Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1075

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 6
Chunk 1075
---
 risk than others (sub-prime credit), the assessment
of the risk assumed in such extensions of credit is a primary consideration on the part of the board. Risk oversight is also a key function
of the Audit Committee and Compensation Committee.

The principal risk management function performed
by the Audit Committee is the ongoing assessment of the credit estimates and allowances periodically recorded in the Company’s
books. The Audit Committee reviews that assessment regularly. Other risk assessments performed by the Audit Committee include assessments
of contingent liabilities, and of other reserves and allowances.

The principal risk management functions performed
by the Compensation Committee are its setting and evaluation of objectives for the chief executive officer, in connection with its administration
of the Executive Management Bonus Plan. The Compensation Committee recognizes that the Company’s business of extending subprime
credit inherently includes a conflict between growing the business and managing the risk of credit losses: one means to increase the Company’s
business is to offer credit on terms that are priced too low for the risk assumed. The Compensation Committee manages that risk by insisting
that objectives to grow the business are qualified by a mandate that credit quality be maintained at appropriate levels. To some extent,
such risk management is shared with the Audit Committee, which performs the primary oversight of whether credit risk assumed is reflected
with adequate allowances in the Company’s financial statements. 

 64 

Chief Executive Officer Pay Ratio

The Dodd-Frank Reform and Consumer Protection
Act includes a mandate that public companies disclose the ratio of the compensation of their chief executive officer to their median
employee (“CEO Pay Ratio”). The CEO Pay Ratio for 2024 is not calculable at this time because Mr. Bradley’s 2024 Non-Equity
Incentive Plan Compensation award has not yet been determined. The 2024 Non-Equity Incentive Plan Compensation award is expected to be
determined by the end of June 2025. Such amount, when finally determined, and the CEO Pay Ratio for 2024, will be disclosed in a filing
under Item 5.02(f) of Form 8-K.

Director Compensation

Throughout 2024, we paid our non-employee directors a retainer of
$6,000 per month, with an additional fee of $700 per month for service on a board committee ($1,200 for a committee chairman). Non-employee
directors also received per diem fees of $1,000 for attendance in person at meetings of the Board of Directors, or $500 for attendance
by telephone