Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 43

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 43
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 such assumptions would be correct, the Compensation Committee has chosen not to put into place any special deferred compensation
programs for the Company’s executive officers. Those officers do participate in a Company-sponsored tax-deferred savings plan, commonly
known as a 401(k) plan, on the same terms available to Company employees generally.

The Compensation Committee may in the future revisit its conclusions as
to any of the components discussed above, or may consider other forms of compensation.

The Base Salary Element

With respect to the retention objective, the Compensation Committee considers
an executive’s base salary to be the most critical component. Acting primarily on the basis of recommendations of the Chief Executive
Officer, the Compensation Committee adjusts other officers’ base salaries annually, with the adjustment generally consisting of
a 2% to 10% increase from the prior year’s rate. Where exceptional circumstances apply, such as recruitment of a new executive officer,
a promotion to executive officer status or a special need to retain an individual officer, the Chief Executive Officer may recommend,
and the Compensation Committee may approve, a larger increase.

The Company’s general approach in setting the annual compensation
of its named executive officers is to set those officers’ base compensation by reference to their base rates for the preceding year.
During the year ended December 2024, the Company’s Chief Executive Officer, Charles E. Bradley, Jr., received $995,000 in base salary.
In setting that rate in 2024, the Compensation Committee considered the base salary rate that the Company had paid in the prior year ($995,000),
the desirability of providing an annual increase, the desirability of ensuring retention of the services of the Company’s incumbent
Chief Executive Officer, the Company’s financial performance, and the levels of Chief Executive Officer compensation prevailing
among other financial services companies. The Compensation Committee considered whether to adjust officers’ base compensation for
2024, and determined not to increase the base rate for the Chief Executive Officer. The Compensation Committee increased the base rate
for the President and the Chief Financial Officer by 4%.

The Annual Incentive Bonus (Executive Management Bonus Plan) Element

The salary and cash bonus of the named executive officers are determined
by the Compensation Committee. To encourage executive officers and key management personnel to exercise their best efforts and management
skills toward causing the Company to meet its overall objective, and toward achieving designated specific individual objectives, the Company
has implemented an Executive Management Bonus Plan (the “EMB Plan”), with annual payouts. The compensation appearing in the