Form 4: Pinnacle West CFO Receives 8,092 Restricted Stock Units

Pinnacle West Capital Corp's SVP & CFO, Andrew D. Cooper, was granted 8,092 Restricted Stock Units with a four-year vesting schedule.

Summary

• Andrew D. Cooper, SVP & CFO of Pinnacle West Capital Corp (PNW), received a grant of 8,092 Restricted Stock Units (RSUs) on February 17, 2026.
• The RSUs represent a contingent right to receive the economic equivalent of one share of the company's common stock and will be settled in common stock.
• Dividend Equivalents will be credited as additional Restricted Stock Units when the company declares cash dividends, with vested dividend equivalents settled in cash.
• The RSU award vests in four equal, annual installments, commencing on February 20, 2027.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive, routine executive compensation event that aligns management's long-term interests with shareholders, reflecting stable corporate governance practices.

Positives

• The grant of 8,092 Restricted Stock Units aligns management's interests with shareholders by tying compensation to future stock performance.
• The four-year vesting schedule encourages long-term commitment and performance from the SVP & CFO.
• Dividend Equivalents ensure the executive benefits from dividend payments, further aligning interests with common shareholders.

Negatives

• The grant does not provide immediate cash compensation or direct stock ownership to the executive.
• The ultimate value of the Restricted Stock Units is contingent on future stock performance and the executive's continued employment.

Risks

• The value of the Restricted Stock Units is subject to the future market price fluctuations of Pinnacle West Capital Corp's common stock.
• The recipient must remain employed with the company until each vesting date to realize the full benefit of the award.

Future Outlook

The grant of Restricted Stock Units with a multi-year vesting schedule indicates a long-term incentive strategy for key management, aligning future executive performance with shareholder value creation.

Industry Context

StockSavvy.ai notes that equity grants, particularly Restricted Stock Units with vesting schedules, are a standard practice in the utility sector for executive compensation. This aligns with industry norms to incentivize long-term performance and retention, similar to practices seen at peers like NextEra Energy or Duke Energy, where executive compensation often includes a significant equity component tied to future performance and tenure.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) for executive compensation is a common practice across the utility industry, aligning with global benchmarks for incentivizing long-term performance and retention.
• A four-year vesting schedule is typical for such equity awards, comparable to programs at companies like Southern Company or American Electric Power, which also use multi-year vesting to ensure executive commitment.
• The inclusion of Dividend Equivalents is also standard, ensuring executives benefit from shareholder returns, a practice observed in many dividend-paying utility companies.

Stakeholder Impact

• Shareholders: Aligns executive incentives with long-term shareholder value through equity ownership and performance-based vesting.
• Employees: Demonstrates the company's commitment to executive retention and performance-based compensation practices.

Next Steps

• The Restricted Stock Units will vest in four equal, annual installments beginning on February 20, 2027.
• The recipient will be credited with additional Restricted Stock Units for cash dividends declared by the company until the applicable vesting date.

Key Dates

Recommendation

This Form 4 details a routine executive compensation grant of Restricted Stock Units, which is an expected part of a public company's incentive structure. While it aligns management's interests with shareholders, it does not provide new fundamental information to warrant a change in investment recommendation based solely on this filing.

Keywords

Pinnacle West Capital Corp, PNW, Restricted Stock Units, RSU, Executive Compensation, Form 4, Insider Transaction, Andrew D. Cooper, SVP & CFO, Equity Grant