Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 41

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 41
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 the performance evaluations of the other executive officers); |
| · | Reviews and approves each element of compensation, as well as the terms and conditions of employment, of those other executive officers;                                                                                        |
| · | Grants awards under our equity compensation plans and oversees the administration of those plans; and                                                                                                                           |
| · | Reviews the costs and structure of our key employee benefit and fringe-benefit plans and programs.                                                                                                                              |

The Compensation Committee is authorized to form subcommittee(s) and to
retain experts and consultants to assist in the discharge of its responsibilities. To date it has not done so.

| 25 |

The Chief Executive Officer, who attends meetings of the Compensation Committee
by invitation of the Committee’s chairman, assists the Committee in determining the compensation of 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 Compensation 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.

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)