exv10w1



 










Exhibit 10.1




SUMMARY OF EXECUTIVE SALARY AND BONUS ARRANGEMENTS




     The following table summarizes the current annual base salary arrangements of each of our
named executive officers.



	 	 	 	 	 
	Named Executive Officer	 	2005 Base Salary
	Ernest S. Rady
	 	$	500,000	 
	Chairman of the Board and Chief Executive Officer of Westcorp and Western
Financial Bank, Chairman of the Board of WFS Financial Inc
	 	 	 	 
	 
	 	 	 	 
	Thomas A. Wolfe
	 	$	650,000	 
	President of Westcorp, President and Vice Chairman of Western Financial
Bank, President and Chief Executive Officer of WFS Financial Inc
	 	 	 	 
	 
	 	 	 	 
	Robert J. Costantino
	 	$	400,000	 
	Executive Vice President, Chief Financial Officer and Chief Operating
Officer of Westcorp and Senior Executive Vice President, Chief Financial
Officer and Chief Operating Officer of WFS Financial Inc and Western
Financial Bank
	 	 	 	 
	 
	 	 	 	 
	William Katafias
	 	$	260,000	 
	Senior Vice President and National Production Manager of WFS Financial Inc
	 	 	 	 
	 
	 	 	 	 
	Dawn M. Martin
	 	$	268,000	 
	Senior Vice President and Chief Information Officer of Westcorp,
Executive Vice President and Chief Information Officer of WFS Financial
Inc and Western Financial Bank
	 	 	 	 






     Certain of our named executive officers are eligible to participate in our variable pay bonus
program, which is intended to provide our executive officers with opportunities to earn bonuses
based on our performance as a whole, the performance of their business unit and their individual
performance. Under the variable pay bonus program, eligible employees may earn an annual bonus
upon their achievement of specified objectives which are established in advance and set forth in
their respective variable pay bonus program agreements. Each eligible employee’s bonus objectives
are based upon the employee’s job classification and function within our company. For our
executive officers, relevant bonus objectives may include financial goals such as overall
profitability, loan volume growth, operating earnings, loan delinquency levels, return on equity,
return on assets, Community Reinvestment Act results, cost controls and productivity. The most
weight is typically given to profitability as it relates to established goals. We generally pay
bonuses under our variable pay bonus program on an annual basis, and we expect that bonuses for
2005 will be determined in early 2006. All payments under our variable pay bonus program are
subject to approval by our Compensation Committee. Assuming the Compensation Committee approves
the variable pay bonuses for our named executive officers and the officers attain their bonus
objectives, the target bonuses for Messrs. Rady, Wolfe, Costantino, and Katafias and Ms. Martin
would 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 of
Thomas 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 a
management agreement based upon time spent.



     Each of our executive officers are “at will” employees. All compensation arrangements with our
named executive officers are reviewed and may be modified from time to time by the Compensation
Committee of our Board of Directors.