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 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, subject to continued employment requirements. The credits are scheduled to be deposited into a Discretionary Credit Account for Heflin 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. Each credit is conditioned on Heflin remaining employed by APS on the applicable crediting date. The account is scheduled to vest on May 1, 2030, provided Heflin remains employed with APS through that date. Amounts credited to the account will accrue interest under the terms of the deferred compensation plan. If Heflin separates from service before the vesting date, previously credited amounts generally will 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 appointments, departures and compensatory arrangements. No stock transaction, option exercise, share sale, purchase price, transaction code, or post-transaction ownership amount was reported; the action concerns a deferred cash-credit retention award rather than an insider securities trade. Pinnacle West also filed the award agreement as Exhibit 10.1, dated June 23, 2026, between APS and Adam Heflin.