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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2022
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, 2022 and 2021, a total of 25,000,000 shares of NRG common stock were authorized for issuance under the NRG LTIP. There were 8,179,771 and 8,871,874 shares of common stock remaining available for grants under the NRG LTIP as of December 31, 2022 and 2021, 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. Restricted Stock Units As of December 31, 2022, 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 2022 and 2021 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, 2021 | 669,952 |  |  | $ | 38.69 |
Granted | 530,565 |  |  | 41.26 |
Forfeited | (43,601) |  |  | 41.09 |
Vested | (299,999) |  |  | 38.36 |
Non-vested at December 31, 2022 | 856,917 |  |  | 40.25 |
The total fair value of RSUs vested during the years ended December 31, 2022, 2021 and 2020 was $10 million, $12 million and $17 million, respectively. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2022, 2021 and 2020 was $41.26, $39.00 and $38.05, 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, 2021 | 384,128 |  |  | $ | 26.11 |
Granted | 52,865 |  |  | 45.49 |
Converted to Common Stock | (18,979) |  |  | 39.27 |
Outstanding at December 31, 2022 | 418,014 |  |  | 27.63 |
The aggregate intrinsic values for DSUs outstanding as of December 31, 2022, 2021 and 2020 were approximately $13 million, $17 million and $13 million, respectively. The aggregate intrinsic values for DSUs converted to common stock for the years ended December 31, 2022, 2021 and 2020 were $1 million, $1 million and $2 million, respectively. The weighted average grant date fair value of DSUs granted during the years ended December 31, 2022, 2021 and 2020 was $45.49, $32.27 and $35.59, respectively. Relative Performance Stock Units RPSUs 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. 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. For RPSU's granted in 2022 and forward, the peer group consists of the companies that comprise the Standard & Poor’s 500 Index on the first day of the performance period. 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 following table summarizes the Company's non-vested RPSU awards and changes during the year:
| Units |  | Weighted Average Grant-Date Fair Value per Unit
Non-vested at December 31, 2021 | 730,505 |  |  | $ | 47.40 |
Granted | 291,852 |  |  | 57.41 |
Forfeited | (54,392) |  |  | 46.68 |
Vested | (172,630) |  |  | 45.77 |
Non-vested at December 31, 2022 | 795,335 |  |  | 50.23 |
The weighted average grant date fair value of RPSUs granted during the years ended December 31, 2022, 2021 and 2020, was $57.41, $46.78 and $23.75, respectively. The fair value of RPSUs 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 RPSUs are summarized below:
| 2022 |  | 2021(a) |  | 2020 |  |  |
| RPSUs |  | RPSUs |  | RPSUs |  |  |
Expected volatility | 37.54 | % |  | 34.05 | % |  | 30.15 | % |  |  |
Expected term (in years) | 3 |  | 3 |  | 3 |  |  |
Risk free rate | 0.97 | % |  | 0.17 | % |  | 1.58 | % |  |  |
(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, 2022 and 2021, expected volatility is calculated based on NRG's historical stock price volatility data over the period commensurate with the expected term of the RPSU, which equals the vesting period. Non-Qualified Stock Options All NQSOs granted under the Company's LTIP were fully vested as of December 31, 2022, 2021 and 2020. No NQSOs were granted in 2022, 2021 or 2020. Of the 17,870 NQSOs that were outstanding at December 31, 2021, 14,477 were exercised during the year ended December 31, 2022 and 3,393 expired. No compensation expense was recognized during 2022, 2021 or 2020 related to NQSOs. 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, 2022, for each of the types of awards issued under the LTIPs. Minimum tax withholdings of $6 million, $9 million, and $27 million for the years ended December 31, 2022, 2021, and 2020, 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 | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2022 |
RSUs | $ | 15 |  |  | $ | 9 |  |  | $ | 9 |  |  | $ | 17 |  |  | 1.75 |
DSUs | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | 0.00 |
RPSUs | 11 |  |  | 9 |  |  | 10 |  |  | 13 |  |  | 1.16 |
PRSUs(a) | 6 |  |  | 7 |  |  | 6 |  |  | 7 |  |  | 1.45 |
Total | $ | 34 |  |  | $ | 27 |  |  | $ | 27 |  |  | $ | 37 |  |  |  |
Tax detriment/(benefit) recognized | $ | 3 |  |  | $ | 2 |  |  | $ | (9) |  |  |  |  |  |
(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

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