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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company's stock-based compensation consists of awards granted under the NRG LTIP and following the Acquisition in March 2023, the Vivint LTIP. NRG Energy, Inc. Long-Term Incentive Plan As of December 31, 2023 and 2022, a total of 25,000,000 shares of NRG common stock were authorized for issuance under the NRG LTIP. There were 7,717,139 and 8,179,771 shares of common stock remaining available for grants under the NRG LTIP as of December 31, 2023 and 2022, 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. As of December 31, 2023, the outstanding awards under the NRG LTIP include restricted stock units, deferred stock units and relative performance stock units. Restricted Stock Units As of December 31, 2023, RSUs granted under the NRG LTIP typically have three-year graded vesting schedules beginning on the grant date. Fair value of the RSUs granted during 2023 and 2022 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, 2022 | 856,917 |  |  | $ | 40.25 |
Granted | 1,031,469 |  |  | 35.71 |
Forfeited | (284,076) |  |  | 34.70 |
Vested | (393,470) |  |  | 39.67 |
Non-vested at December 31, 2023 | 1,210,840 |  |  | 37.88 |
The total fair value of RSUs vested during the years ended December 31, 2023, 2022 and 2021 was $20 million, $10 million and $12 million, respectively. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $35.71, $41.26 and $39.00, 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 NRG LTIP 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, 2022 | 418,014 |  |  | $ | 27.63 |
Granted | 79,072 |  |  | 34.40 |
Converted to Common Stock | (53,799) |  |  | 25.11 |
Outstanding at December 31, 2023 | 443,287 |  |  | 29.07 |
The aggregate intrinsic values for DSUs outstanding as of December 31, 2023, 2022 and 2021 were approximately $23 million, $13 million and $17 million, respectively. The aggregate intrinsic values for DSUs converted to common stock for the years ended December 31, 2023, 2022 and 2021 were $3 million, $1 million and $1 million, respectively. The weighted average grant date fair value of DSUs granted during the years ended December 31, 2023, 2022 and 2021 was $34.40, $45.49 and $32.27, 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 ("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, 2022 | 795,335 |  |  | $ | 50.23 |
Granted | 617,510 |  |  | 39.46 |
Forfeited(a) | (737,227) |  |  | 45.61 |
Vested | (3,729) |  |  | 50.28 |
Non-vested at December 31, 2023 | 671,889 |  |  | 46.27 |
(a)Includes January 2023 vestings that occurred at a 0% payout as well as forfeitures due to the departure of certain officers The weighted average grant date fair value of RPSUs granted during the years ended December 31, 2023, 2022 and 2021, was $39.46, $57.41 and $46.78, 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:
| 2023 |  | 2022 |  | 2021(a) |  |  |
Expected volatility | 41.35 | % |  | 37.54 | % |  | 34.05 | % |  |  |
Expected term (in years) | 3 |  | 3 |  | 3 |  |  |
Risk free rate | 4.18 | % |  | 0.97 | % |  | 0.17 | % |  |  |
(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% The 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. Vivint Smart Home Long-Term Incentive Plan Effective March 10, 2023, in connection with the Vivint Smart Home Acquisition, as discussed in Note 4, Acquisitions and Dispositions, NRG assumed the Vivint Smart Home, Inc. Long-Term Incentive Plan, or Vivint LTIP. In addition to the rollover awards converted as part of the Acquisition, the Vivint LTIP provides for issuances of time-based restricted stock units and performance-based restricted stock units. As of December 31, 2023, 17,500,000 shares of NRG common stock were authorized for issuance under the Vivint LTIP, and there were 12,749,736 shares of common stock remaining available for grants. Restricted Stock Units As of December 31, 2023, RSUs under the Vivint LTIP include RSUs which were granted prior to the Acquisition and were converted into awards that will vest as NRG common stock ("Rollover RSUs"). These awards typically had four-year graded vesting schedules beginning on the grant date. The fair value of the Rollover RSUs is based on the fair value of NRG common stock on the Acquisition date after applying the conversion ratio as per the Merger Agreement. The RSUs that were granted following the Acquisition date are typically subject to the same terms as the RSUs under the NRG LTIP. The following table summarizes the non-vested RSUs under the Vivint LTIP and changes during the year:
| Rollover RSUs |  | RSUs granted following the Acquisition
| Units |  | Weighted Average Grant Date Fair Value per Unit |  | Units |  | Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2022 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Rollover RSUs at the Acquisition date | 4,553,998 |  |  | 31.63 |  |  | — |  |  | — |
Granted following the Acquisition date | — |  |  | — |  |  | 895,827 |  |  | 35.24 |
Forfeited | (288,776) |  |  | 31.63 |  |  | (110,531) |  |  | 35.21 |
Vested | (1,280,321) |  |  | 31.63 |  |  | (4,998) |  |  | 35.21 |
Non-vested at December 31, 2023 | 2,984,901 |  |  | 31.63 |  |  | 780,298 |  |  | 35.24 |
The total fair value of RSUs vested during the year ended December 31, 2023 was $66 million. Performance Stock Units As of December 31, 2023, PSUs granted under the Vivint LTIP are generally granted under the same terms as the PSUs granted under the NRG LTIP, and are valued using the same methods and assumptions. During the year ended December 31, 2023, 102,837 PSUs were granted at a weighted average grant date fair value per unit of $44.96 and remain outstanding as of year end. 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, 2023, for each of the types of awards issued under the LTIPs. Minimum tax withholdings of $22 million, $6 million, and $9 million for the years ended December 31, 2023, 2022, and 2021, 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 | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2023 |
RSUs under NRG LTIP | $ | 20 |  |  | $ | 15 |  |  | $ | 9 |  |  | $ | 29 |  |  | 1.61 |
RSUs under Vivint LTIP | 76 |  |  | — |  |  | — |  |  | 69 |  |  | 1.82 |
PSUs under Vivint LTIP | 2 |  |  | — |  |  | — |  |  | 3 |  |  | 2.25 |
DSUs | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | 0.00 |
RPSUs | 3 |  |  | 11 |  |  | 9 |  |  | 17 |  |  | 1.69 |
PRSUs under NRG LTIP(a) | 12 |  |  | 6 |  |  | 7 |  |  | 15 |  |  | 1.74 |
PRSUs under Vivint LTIP(a) | 8 |  |  | — |  |  | — |  |  | 14 |  |  | 2.29 |
Total | $ | 123 |  |  | $ | 34 |  |  | $ | 27 |  |  | $ | 147 |  |  |  |
Tax detriment recognized | $ | 2 |  |  | $ | 3 |  |  | $ | 2 |  |  |  |  |  |
(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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