Balanced Scorecard and incentive systems

In monitoring and auditing corporate activities, the Company utilizes a Balanced Scorecard (BSC) system, a panel of indicators that allow it to follow quarterly the progress made with respect to the operating objectives into which – according to the economic/financial, organizational/processes, strategic/customers, and innovation/development areas – the annual objectives of the Strategic Plan are divided. Particularly significant from the point of view of sharing Terna’s sustainable approach to business, is the inclusion in the BSC system of sustainability objectives. Thanks to the link between the Balanced Scorecard and variable-pay schemes for managers (MBO), the sustainability objectives are also supported by the incentive systems based on pay.