Pinnacle West Capital Corp. reported a new executive compensation arrangement for Adam Heflin, executive vice president and chief nuclear officer of Arizona Public Service Company, its principal utility subsidiary. Heflin is also a named executive officer of Pinnacle West. On June 23, 2026, the Human Resources Committee of Pinnacle West’s board approved a Discretionary Credit Award Agreement for Heflin under Section 3.9 of the company’s Deferred Compensation Plan of 2005 for Employees of Pinnacle West Capital Corporation and Affiliates. The agreement provides for a total of $1.5 million in discretionary deferred-compensation credits, contingent on Heflin’s continued employment with APS on each scheduled crediting date. The credits are scheduled to be made in installments: $300,000 on July 1, 2026; $300,000 on July 1, 2027; $400,000 on July 1, 2028; and $500,000 on July 1, 2029. These amounts will be credited to a Discretionary Credit Account established for Heflin’s benefit and will accrue interest according to the terms of the deferred compensation plan. The account is scheduled to vest on May 1, 2030, provided Heflin remains employed with APS through that date. If he separates from service before vesting, previously credited amounts will generally be forfeited. The agreement provides exceptions for death, disability, or termination without cause. The filing was made under Item 5.02, which covers executive officer departures, appointments and compensatory arrangements. No securities transaction, share issuance, option grant, stock price, transaction code, or post-transaction ownership change was reported; the action relates to a cash-based deferred compensation award rather than an equity transaction.