Consumer Portfolio Services Inc. (CPSS) has proposed a new 2025 Equity Incentive Plan, which is facing strong opposition from its largest shareholder, Black Diamond Capital Management. Black Diamond announced its intent to vote against the plan at the upcoming annual meeting, citing concerns over the company's recent stock underperformance and potential further dilution of shareholder value. The firm highlighted that the CEO, who already owns approximately 17.8% of common shares and holds options for an additional 2.19 million shares, has historically been the largest recipient of option awards and is likely to benefit most from the new plan. Black Diamond argues that increasing the CEO's shareholdings at this time would entrench management despite ongoing company underperformance.