NRG Energy CEO Gutierrez leaves company, as activist investor Elliott gets its wish

Shares of NRG Energy Inc. (NRG) rose 0.9% into record territory in premarket trading Monday, after the energy utility said Chief Executive Officer Mauricio Gutierrez has left the company after being named CEO eight years ago, and after 19 years with the company. The company also said it would add four independent directors to its board, all as part of a cooperation agreement with activist investor Elliott Investment Management. The leadership change comes after Elliott in June again called for the ouster of Gutierrez as CEO, with the hedge fund saying it believed Gutierrez had "lost the confidence of the core investor base." The company appointed Chairman Lawrence Coben has interim CEO while it searches for a permanent CEO replacement. NRG said it will "conduct a comprehensive review of its operations and cost structure" to identify opportunities to become more efficient and boost shareholder returns. NRG's stock has soared 51.1% year to date through Friday, while the Utilities Select Sector SPDR ETF (XLU) has dropped 11.7% and the S&P 500 has gained 17.6%.

-Tomi Kilgore

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11-20-23 0720ET

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