XML 63 R30.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Stock-Based Compensation | Stock-Based Compensation NRG Energy, Inc. Long-Term Incentive Plan On April 27, 2017, the NRG LTIP was amended to increase the number of shares available for issuance by 3,000,000. As of December 31, 2021 and 2020, a total of 25,000,000 shares of NRG common stock were authorized for issuance under the NRG LTIP. There were 8,871,874 and 9,385,730 shares of common stock remaining available for grants under the NRG LTIP as of December 31, 2021 and 2020, respectively. The NRG LTIP is subject to adjustments in the event of reorganization, recapitalization, stock split, reverse stock split, stock dividend, and a combination of shares, merger or similar change in NRG's structure or outstanding shares of common stock. Upon adoption of the amended NRG LTIP effective April 27, 2017, no shares of NRG common stock remain available for future issuance under the NRG GenOn LTIP. As of December 31, 2021 and 2020, there were 20,131 and 78,903 shares of common stock remaining available for grants under the NRG GenOn LTIP, respectively. Restricted Stock Units As of December 31, 2021, RSUs granted under the Company's LTIPs typically have three-year graded vesting schedules beginning on the grant date. Fair value of the RSUs granted during 2021 and 2020 is derived from the closing price of NRG common stock on the grant date. The following table summarizes the Company's non-vested RSU awards and changes during the year:
| Units |  | Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2020 | 519,514 |  |  | $ | 35.87 |
Granted | 479,415 |  |  | 39.00 |
Forfeited | (49,816) |  |  | 37.41 |
Vested | (279,161) |  |  | 34.18 |
Non-vested at December 31, 2021 | 669,952 |  |  | 38.69 |
The total fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was $12 million, $17 million and $36 million, respectively. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2021, 2020 and 2019 was $39.00, $38.05 and $37.37, respectively. Deferred Stock Units DSUs represent the right of a participant to be paid one share of NRG common stock at the end of a deferral period established under the terms of the award. DSUs granted under the Company's LTIPs are fully vested at the date of issuance. Fair value of the DSUs, which is based on the closing price of NRG common stock on the date of grant, is recorded as compensation expense in the period of grant. The following table summarizes the Company's outstanding DSU awards and changes during the year:
| Units |  | Weighted Average Grant Date Fair Value per Unit
Outstanding at December 31, 2020 | 342,706 |  |  | $ | 25.37 |
Granted | 64,512 |  |  | 32.27 |
Converted to Common Stock | (23,090) |  |  | 30.92 |
Outstanding at December 31, 2021 | 384,128 |  |  | 26.11 |
The aggregate intrinsic values for DSUs outstanding as of December 31, 2021, 2020 and 2019 were approximately $17 million, $13 million and $13 million, respectively. The aggregate intrinsic values for DSUs converted to common stock for the years ended December 31, 2021, 2020 and 2019 were $1 million, $2 million and $2 million, respectively. The weighted average grant date fair value of DSUs granted during the years ended December 31, 2021, 2020 and 2019 was $32.27, $35.59 and $34.84, respectively. Performance Stock Units PSUs entitle the recipient to stock upon vesting. The amount of the award is subject to the Company's achievement of certain performance measures over the vesting period. PSUs include RPSUs and MSUs. As of December 31, 2021, non-vested PSUs consist of RPSUs. Relative Performance Stock Units — RPSUs are restricted grants where the quantity of shares increases and decreases alongside the Company's Total Shareholder Return, or TSR, relative to the TSR of the Company's current proxy peer group and the total returns of select indexes, or Peer Group(a). Each RPSU represents the potential to receive NRG common stock after the completion of the performance period, typically three years of service from the date of grant. The number of shares of NRG common stock to be paid (if any) as of the vesting date for each RPSU will depend on the Company’s percentile rank within the Peer Group. The number of shares of common stock to be paid as of the vesting date for each RPSU is linearly interpolated for TSR performance between the following points: (i) 0% if ranked below the 25th percentile; (ii) 25% if ranked at the 25th percentile; (iii) 100% if ranked at the 55th percentile (or the 65th percentile if the Company's absolute TSR is less than negative 15%); and (iv) 200% if ranked at the 75th percentile or above. The value of the common stock on the date of grant is based on the closing price of NRG common stock on the date of grant. (a) For RPSU's granted in 2022 and forward the peer group will consist of the companies that comprise the Standard & Poor’s 500 Index on the first day of the performance period. The following table summarizes the Company's non-vested PSU awards and changes during the year:
| Units |  | Weighted Average Grant-Date Fair Value per Unit
Non-vested at December 31, 2020 | 793,561 |  |  | $ | 41.69 |
Granted | 426,768 |  |  | 46.78 |
Forfeited | (93,031) |  |  | 47.21 |
Vested | (396,793) |  |  | 35.32 |
Non-vested at December 31, 2021 | 730,505 |  |  | 47.40 |
The weighted average grant date fair value of PSUs granted during the years ended December 31, 2021, 2020 and 2019, was $46.78, $23.75 and $22.50, respectively. The fair value of PSUs is estimated on the date of grant using a Monte Carlo simulation model and expensed over the service period, which equals the vesting period. Significant assumptions used in the fair value model with respect to the Company's PSUs are summarized below:
| 2021(a) |  | 2020 |  | 2019 |  |  |
| RPSUs |  | RPSUs |  | RPSUs |  |  |
Expected volatility | 34.05 | % |  | 30.15 | % |  | 40.72 | % |  |  |
Expected term (in years) | 3 |  | 3 |  | 3 |  |  |
Risk free rate | 0.17 | % |  | 1.58 | % |  | 2.45 | % |  |  |
(a) Assumptions pertain to the main award granted in January 2021. Additional 60,815 RPSUs were granted in September 2021 with a risk free rate of 0.42% and expected volatility of 37.38% For the years ended December 31, 2021 and 2020, expected volatility is calculated based on NRG's historical stock price volatility data over the period commensurate with the expected term of the PSU, which equals the vesting period. Non-Qualified Stock Options All NQSOs granted under the Company's LTIP were fully vested as of December 31, 2021, 2020 and 2019. No NQSOs were granted in 2021, 2020 or 2019. NRG recognized compensation costs for NQSOs over the requisite service period for the entire award. No compensation expense was recognized during 2021, 2020 or 2019 as it was fully recognized in prior years. The maximum contractual term is 10 years for NRG's outstanding NQSOs. The following table summarizes the Company's NQSO activity and changes during the year:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2020 | 77,047 |  |  | $ | 25.13 |  |  | 0.5 |  | $ | 1 |
Expired | (4,800) |  |  | 29.08 |  |  |  |  |
Exercised | (54,377) |  |  | 26.44 |  |  |  |  |
Outstanding at December 31, 2021 | 17,870 |  |  | 20.07 |  |  | 0.2 |  | — |
Exercisable at December 31, 2021 | 17,870 |  |  | 20.07 |  |  | 0.2 |  | — |
The following table summarizes the total intrinsic value of options exercised and the cash received from the exercises of options:
| Year Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Total intrinsic value of options exercised | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |
Cash received from options exercised | 1 |  |  | 1 |  |  | 3 |
Supplemental Information The following table summarizes NRG's total compensation expense recognized for the years presented, as well as total non-vested compensation costs not yet recognized and the period over which this expense is expected to be recognized as of December 31, 2021, for each of the types of awards issued under the LTIPs. Minimum tax withholdings of $9 million, $27 million, and $36 million for the years ended December 31, 2021, 2020, and 2019, respectively, are reflected as a reduction to additional paid-in capital on the Company's consolidated balance sheets.
|  |  |  |  |  |  | Non-vested Compensation Cost |
(In millions, except weighted average data) | Compensation Expense |  | Unrecognized Total Cost |  | Weighted Average Recognition Period Remaining (In years) |
| Year Ended December 31, |  | As of December 31, |
Award | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2021 |
RSUs | $ | 9 |  |  | $ | 9 |  |  | $ | 9 |  |  | $ | 16 |  |  | 1.80 |
DSUs | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | 0.00 |
RPSUs | 9 |  |  | 10 |  |  | 10 |  |  | 15 |  |  | 1.19 |
PRSUs(a) | 7 |  |  | 6 |  |  | 11 |  |  | 10 |  |  | 1.52 |
Total | $ | 27 |  |  | $ | 27 |  |  | $ | 32 |  |  | $ | 41 |  |  |  |
Tax detriment/(benefit) recognized | $ | 2 |  |  | $ | (9) |  |  | $ | (12) |  |  |  |  |  |
(a)Phantom Restricted Stock Units, PRSUs, are liability-classified time-based awards that typically vest ratably over a three-year period. The amount to be paid upon vesting is based on NRG's closing stock price for the period

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration