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Changes in Capital Structure
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Changes in Capital Structure Changes in Capital Structure
As of September 30, 2020 and December 31, 2019, 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, 2019421,890,790 (172,894,601)248,996,189 
Shares issued under LTIPs1,150,559 — 1,150,559 
Shares issued under ESPP— 63,455 63,455 
Shares repurchased — (6,062,783)(6,062,783)
Balance as of September 30, 2020423,041,349 (178,893,929)244,147,420 
Shares issued under LTIPs5,400 — 5,400 
Shares issued under ESPP— 68,014 68,014 
Balance as of November 5, 2020423,046,749 (178,825,915)244,220,834 
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. The following repurchases have been made during the nine months ended September 30, 2020:
Total number of shares purchasedAverage price paid per share
Amounts paid for shares purchased (in millions)
2020 repurchases:
Repurchases6,062,783 $197 
Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances(a)
711,248 27 
Total Share Repurchases during the nine months ended September 30, 20206,774,031 $33.05$224 
(a) 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 $38.23
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 will occur each April 1 and October 1. An exercise date will occur each September 30 and March 31.
NRG Common Stock Dividends
Beginning in the first quarter of 2020, NRG increased the annual dividend to $1.20 from $0.12 per share and expects to target an annual dividend growth rate of 7-9% per share in subsequent years. A quarterly dividend of $0.30 per share was paid on the Company's common stock during the three months ended September 30, 2020. On October 23, 2020, NRG declared a quarterly dividend on the Company's common stock of $0.30 per share, payable on November 16, 2020 to stockholders of record as of November 2, 2020.
The Company's common stock dividends are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations.