NRG Energy (NYSE:NRG) Inc announced on Monday that its president and CEO Mauricio Gutierrez has left the company and resigned from its board of directors after the independent power producer reached a deal with activist investor Elliott Investment Management LP.
NRG said its chairman Lawrence Coben will become interim CEO as the company initiates a search to identify a permanent replacement for Gutierrez.
"The company is generating substantial cash flow, which is supporting a solid balance sheet, investments in our business and meaningful capital returns," Coben said in a statement.
NRG also noted that it will conduct a review of its operations to find ways to increase efficiencies, as well as add four independent directors.
Furthermore, the company reaffirmed its guidance for 2023 and 2024, in addition to its previously announced strategic growth plan, cost savings targets and capital allocation framework.
Elliott targeted the company’s strategy about six months ago, particularly its agreement last December to acquire home technology company Vivint Smart Home Inc for $2.8 billion, Bloomberg reported.
Shares of NRG Energy (NYSE:NRG) slipped 1.4% to $47.40 in early trading on Monday but have gained 49% year to date.
Contact Sean at sean@proactiveinvestors.com