NRG Energy Lifts Buybacks, Considers Board Changes After Criticism by Activist Firm Elliott

The announcement came just over a month after Elliott criticized NRG for what it called the “worst deal of the decade” for its March acquisition of home technology provider Vivint Smart Home Inc. for about $2.8 billion. The activist firm founded by billionaire investor Paul Singer demanded new, independent directors be added to the NRG board. Elliott is also seeking to oust NRG Chief Executive Officer Mauricio Gutierrez and other executives, the Wall Street Journal said Wednesday.

NRG said it’s evaluating feedback from shareholders to bring “additional expertise” to its board as it works with a recruiting firm. “This is part of an ongoing, deliberate process to evolve board composition with a focus on diverse skills and experiences in alignment with the company’s strategy,” the company said.

NRG executives including Gutierrez noted the measures during the investor day event while highlighting the opportunities the company expects to see from its Vivint purchase.

“NRG has been through multiple strategic changes over the last decade, so it’s reassuring to hear they’re sticking with the strategy,” Morningstar analyst Travis Miller said in a phone interview. “The only surprise is that there were no surprises.”