**EXHIBIT 10.1****SUMMARY OF EXECUTIVE SALARY AND BONUS ARRANGEMENTS**     The following table summarizes the current annual base salary arrangements of each of ournamed executive officers.     **Named Executive Officer** **2005 Base Salary** **Ernest S. Rady** $500,000 Chairman of the Board and Chief Executive Officerof Westcorp and Western Financial Bank, Chairmanof the Board of WFS Financial Inc    **Thomas A. Wolfe** $650,000 President of Westcorp, President and Vice Chairmanof Western Financial Bank, President and ChiefExecutive Officer of WFS Financial Inc    **Robert J. Costantino $400,000 Executive Vice President, Chief Financial Officerand Chief Operating Officer of Westcorp and SeniorExecutive Vice President, Chief Financial Officerand Chief Operating Officer of WFS Financial Incand Western Financial Bank    **William Katafias** $260,000 Senior Vice President and National ProductionManager of WFS Financial Inc    **Dawn M. Martin** $268,000 Senior Vice President and Chief Information Officerof Westcorp, Executive Vice President and ChiefInformation Officer of WFS Financial Inc andWestern Financial Bank         Certain of our named executive officers are eligible to participate in our variable pay bonusprogram, which is intended to provide our executive officers with opportunities to earn bonusesbased on our performance as a whole, the performance of their business unit and their individualperformance. Under the variable pay bonus program, eligible employees may earn an annual bonusupon their achievement of specified objectives which are established in advance and set forth intheir respective variable pay bonus program agreements. Each eligible employee’s bonus objectivesare based upon the employee’s job classification and function within our company. For ourexecutive officers, relevant bonus objectives may include financial goals such as overallprofitability, loan volume growth, operating earnings, loan delinquency levels, return on equity,return on assets, Community Reinvestment Act results, cost controls and productivity. The mostweight is typically given to profitability as it relates to established goals. We generally paybonuses under our variable pay bonus program on an annual basis, and we expect that bonuses for2005 will be determined in early 2006. All payments under our variable pay bonus program aresubject to approval by our Compensation Committee. Assuming the Compensation Committee approvesthe variable pay bonuses for our named executive officers and the officers attain their bonusobjectives, the target bonuses for Messrs. Rady, Wolfe, Costantino, and Katafias and Ms. Martinwould be 55%, 69%, 60%, 60% and 40%, respectively, of their 2005 base salaries.     The compensation for Ernest Rady was paid by Western Financial Bank. The compensation ofThomas Wolfe, Robert Costantino, William Katafias, and Dawn Martin was paid by WFS Financial Inc.Compensation for officers who are officers of more than one company are allocated as part of amanagement agreement based upon time spent.     Each of our executive officers are “at will” employees. All compensation arrangements with ournamed executive officers are reviewed and may be modified from time to time by the CompensationCommittee of our Board of Directors.
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