NRG is in Search of a new CEO

NRG Energy Inc. is undergoing significant changes for the second time in six years, prompted by objections from activist investor Elliott Investment Management LP regarding the direction pursued by the independent US power producer.

In response to criticism from Elliott regarding the company’s $2.8 billion acquisition of Vivint Smart Home Inc., NRG announced the replacement of Chief Executive Officer Mauricio Gutierrez. Elliott had previously labeled this acquisition as the “worst deal” in the power and utilities industry for the decade. Back in 2017, Elliott’s influence led NRG to refocus on traditional electricity generation and retail businesses, resulting in the sale of a major portion of the company’s solar and wind fleet.

NRG is currently in search of a new CEO, aligning with Elliott’s objectives, although it remains uncertain whether Gutierrez’s successor will alter the company’s trajectory. People familiar with the matter have indicated that undoing the Vivint deal is not presently under consideration. Interestingly, NRG’s stock has witnessed an upsurge following renewed criticism from Elliott earlier this year, reaching record highs last week.

Following Gutierrez’s departure, NRG Chairman Lawrence Coben will serve as interim CEO, as announced by the Houston-based company on Monday. Additionally, NRG plans to appoint four independent directors and initiate a review of its operations.

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