The Balanced Scorecard and incentive schemes

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Monitoring and control of corporate activities makes use of a Balanced Scorecard (BSC) system. This is a control panel of indicators which make it possible to follow, every quarter, the progress status of the operating objectives into which – according to economic and financial, organizational and process, strategic and customer, and innovation and development quadrants – the annual objectives of the Strategic Plan are organized. Inserting sustainability objectives into the BSC system is particularly significant, with a view to sharing the sustainable approach to Terna's business. Thanks to the link between the Balanced Scorecard and the managers' variable pay schemes (MBOs), sustainability objectives are also supported by the incentive systems based on pay.