GenOn Energy has named 15 senior and executive leaders at its Houston headquarters that will be cut, among 500 positions eliminated in NRG Energy’s acquisition of GenOn.
The leadership cuts will take effect between December 3 and December 17, according to the notice signed by GenOn Senior Vice President of Human Resources Karen D. Taylor, whose own position is on the list. The cuts are contingent on the successful completion of the deal.
Also on the cut list:
* Chairman and Chief Executive Officer Edward R. Muller
* Executive Vice President and Chief Financial Officer J. William Holden III
* Executive Vice President-General Counsel, Chief Compliance Officer and Corporate Secretary Michael L. Jines
* Senior Vice President Plant Operations James P. Garlick
* Senior Vice President and Deputy General Counsel Corporate Steven B. Nickerson
* Senior Vice President and Controller Thomas C. Livengood
Titles for the other eliminated positions are in the notice below.
The operational headquarters for the combined company will be at NRG’s downtown Houston office, 1201 Fannin Street. The financial headquarters will be in Princeton, N.J., where NRG is based.
GenOn’s downtown Houston office, 1000 Main Street, is slated to close.
“As a result, it is expected that many individuals holding positions at that office will be permanently severed,” the notice states.
Under GenOn’s change-in-control severance plan, the terminated executive officers will receive a lump cash payment worth two or three times their salary plus two or three times their target bonus for the year. They will receive welfare benefit coverage for two or three years after termination, according to a filing with the U.S. Securities and Exchange Commission.
The cuts are contingent on successful completion of the merger.
Two GenOn executive officers will have roles under the agreement. GenOn Senior Vice President of Asset Management Anne M. Cleary will become the chief integration officer for the combined company, a yearlong position to guide synergy between the merged entities. Rob Gaudette, currently senior vice president and chief commercial officer at GenOn, will be named senior vice president of product development and origination for the new NRG, according to the regulatory filings.