Activist investor Elliott Investment Management is seeking to oust NRG Energy Inc.’s chief executive, the Wall Street Journal reported late Wednesday.
The move comes about a month after Elliott disclosed a $1 billion stake in the power company.
According to the Journal, Elliott is talking with potential candidates to replace Chief Executive Mauricio Gutierrez and other top executives.
In May, Elliott unveiled a plan to create about $5 billion in shareholder value for NRG, including a strategic review of its $5.2 billion acquisition of Vivent in 2022, which Elliott called “the single worst deal in the power and utilities sector in the past decade.”
An NRG spokesperson told the Journal on Wednesday that the board supports its current executives and their strategy.
On June 1, NRG authorized $650 million in stock repurchases, on top of a prior $350 million share buyback program.
NRG Energy shares
NRG,
are up about 6.5% year to date, but are down 7% over the past 12 months, compared to the S&P 500’s
SPX,
14% gain in 2023 and 16% gain over the past year.
This story originally appeared on Marketwatch
