Consumer Portfolio Services Discloses $8.08M in FY2025 Executive Compensation, Including Stock Price Targets
Summary
Consumer Portfolio Services filed an 8-K to disclose the full FY2025 compensation for its top executives, including over $4.2 million in non-equity incentive plan payouts and total compensation exceeding $8 million, which was previously omitted from its 10-K.
Key Events
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FY2025 Executive Compensation Disclosed
The company reported the final non-equity incentive plan compensation and total compensation for its named executive officers for fiscal year 2025, which was previously omitted from the 10-K filed on March 16, 2026. The combined total compensation for the CEO, President & COO, and EVP & CFO for 2025 is $8,081,086.
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Significant Non-Equity Incentive Payouts
CEO Charles E. Bradley, Jr. received $3,283,500 in non-equity incentive plan compensation for FY2025, President & COO Michael T. Lavin received $448,693, and EVP & CFO Danny Bharwani received $479,808. These payouts represent a substantial portion of their total compensation.
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CEO Bonus Tied to Ambitious Stock Price Targets
The CEO's incentive plan included objectives for the common stock to trade in excess of targets at $13.00, $14.00, $15.00, and $16.00 per share. These targets are significantly higher than the current stock price of $7.74.
Analysis
This 8-K provides the previously omitted non-equity incentive plan compensation and total compensation for the named executive officers for fiscal year 2025, which was not available at the time of the 10-K filing on March 16, 2026. The total compensation for the CEO, President & COO, and EVP & CFO amounts to over $8 million, representing a substantial payout relative to the company's $168 million market capitalization. Notably, the CEO's bonus plan includes objectives tied to the common stock trading at targets between $13.00 and $16.00 per share, significantly above the current stock price of $7.74. This disclosure comes in the context of the company's recent 10-K reporting flat net income and increased credit risk, which may lead investors to scrutinize the magnitude of executive compensation relative to overall company performance and shareholder returns.
At the time of this filing, CPSS was trading at $7.74 on NASDAQ in the Finance sector, with a market capitalization of approximately $168.4M. The 52-week trading range was $6.67 to $10.51. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.