(Bloomberg) -- NRG Energy Inc. said it is boosting share buybacks and plans to refresh its board after activist investor Elliott Investment Management LP criticized the US power producer over a recent acquisition.
The company said Thursday ahead of an investor presentation that it will now spend $2.7 billion on share repurchases through 2025, from $1 billion previously. Houston-based NRG also said it’s working with an executive search firm to add new directors. Its stock rose 3.3% at 8:45 a.m. in premarket trading in New York.
The announcement comes just over a month after Elliott, founded by billionaire investor Paul Singer, criticized NRG for what it called the “worst deal of the decade” when the company purchased home technology provider Vivint Smart Home Inc. for $2.8 billion in March. Elliott demanded new, independent directors be added to the NRG board. The activist firm is also seeking to oust NRG Chief Executive Officer Mauricio Gutierrez and other executives, the Wall Street Journal said Wednesday.
Read More: NRG Says It Would Build New Gas Plants If Texas Approves Payouts
The stakes are high as Gutierrez heads into NRG’s investor day. Earlier this month, the company sold its stake in a Texas nuclear power plant and named Bruce Chung — who played a critical role in the Vivint deal — as head of mergers and acquisition strategy.
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