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Changes in Capital Structure
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Changes in Capital Structure Changes in Capital Structure
As of March 31, 2022 and December 31, 2021, 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:
IssuedTreasuryOutstanding
Balance as of December 31, 2021423,547,174 (179,793,275)243,753,899 
Shares issued under LTIPs292,630 — 292,630 
Shares repurchased — (4,830,389)(4,830,389)
Balance as of March 31, 2022423,839,804 (184,623,664)239,216,140 
Shares issued under LTIPs13,213 — 13,213 
Shares issued under ESPP— 68,941 68,941 
Shares repurchased— (2,014,734)(2,014,734)
Balance as of April 30, 2022
423,853,017 (186,569,457)237,283,560 
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. On December 6, 2021 the Company announced that the Board of Directors has authorized $1 billion for share repurchases, as part of NRG’s capital allocation program. During 2021, $44 million of share repurchases were completed under this authorization. During the first quarter of 2022, the Company completed $187 million of share repurchases under the plan at an average price of $38.66.
The following repurchases have been made during the three months ended March 31, 2022 and through April 30, 2022:
Total number of shares and share equivalents purchasedAverage price paid per share and share equivalentAmounts paid for shares and share equivalents purchased (in millions)
2022 repurchases
Repurchases(a)
4,830,389 $187 
Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances(b)
131,899 6 
Total Share Repurchases during the three months ended March 31, 20224,962,288 $38.78193 
Repurchases made during April 2022
2,014,734 $76 
Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances(b)
5,465 — 
Total Share Repurchases January 1, 2022 through April 30, 2022
6,982,487 $38.55$269 
(a)Includes $10 million accrued as of March 31, 2022
(b)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 $43.03 and $39.19 for the three months ended March 31, 2022 and for April 2022, respectively
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 occurs each April 1 and October 1. An exercise date occurs each September 30 and March 31.
NRG Common Stock Dividends
During the first quarter of 2022, NRG increased the annual dividend to $1.40 from $1.30 per share and expects to target an annual dividend growth rate of 7%-9% per share in subsequent years. A quarterly dividend of $0.35 per share was paid on the Company's common stock during the three months ended March 31, 2022. On April 20, 2022, NRG declared a quarterly dividend on the Company's common stock of $0.35 per share, payable on May 16, 2022 to stockholders of record as of May 2, 2022.
The Company's common stock dividends are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations.