Changes in Capital Structure

3 Months Ended

Mar. 31, 2020

As of March 31, 2020 and December 31, 2019, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding:


	Issued	Treasury	Outstanding
Balance as of December 31, 2019	421,890,790	(172,894,601)	248,996,189
Shares issued under LTIPs	1,089,103	—	1,089,103

Shares repurchased	—	(4,461,438)	(4,461,438)
Balance as of March 31, 2020	422,979,893	(177,356,039)	245,623,854
Shares issued under LTIPs	1,096	—	1,096
Shares issued under ESPP	—	63,455	63,455
Shares repurchased	—	(1,601,345)	(1,601,345)
Balance as of May 7, 2020	422,980,989	(178,893,929)	244,087,060

Share Repurchases

The Company adopted in the fourth quarter of 2019 a long-term capital allocation policy that targets allocating 50% of cash available for allocation generated each year to growth investments and 50% to be returned to shareholders. The return of capital to shareholders is expected to be completed through the increased dividend discussed below, supplemented by share repurchases. The following repurchases have been made during the three months ended March 31, 2020 and through May 7, 2020:


	Total number of shares purchased	Average price paid per share	Amounts paid for shares purchased (in millions)
2020 repurchases:
Repurchases	4,461,438		$	150
Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances^(a)	710,063		27

Total Share Repurchases during the three months ended March 31, 2020	5,171,501	$34.20	177
Repurchases made subsequent to March 31, 2020	1,601,345		$	47
Total Share Repurchases January 1, 2020 through May 7, 2020	6,772,846	$33.05	$	224

(a) NRG elected to pay cash for tax withholding on equity awards instead of issuing actual shares to management. The average price per equivalent shares withheld was $38.24

Employee Stock Purchase Plan

In March 2019, the Company reopened participation in the ESPP, which allows eligible employees to elect to withhold between 1% and 10% of their eligible compensation to purchase shares of NRG common stock at the lesser of 95% of its market value on the offering date or 95% of the fair market value on the exercise date. An offering date will occur each April 1 and October 1. An exercise date will occur each September 30 and March 31. In April 2020, 63,455 shares of common stock were issued to employee accounts from treasury stock for the offering period of October 1, 2019 to March 31, 2020.

NRG Common Stock Dividends

Beginning in the first quarter of 2020, NRG increased the annual dividend to $1.20 from $0.12 per share and expects to target an annual dividend growth rate of 7-9% per share in subsequent years. A quarterly dividend of $0.30 per share was paid on the Company's common stock during the three months ended March 31, 2020. On April 15, 2020, NRG declared a quarterly dividend on the Company's common stock of $0.30 per share, payable May 15, 2020 to stockholders of record as of May 1, 2020.

The Company's common stock dividends are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations.