Human Resources and Organisation

Organisational structure

In 2009, the Italian Operations Department underwent a series of organisational changes to prepare for major growth in investments Terna is poised to make over the next few years, a variety of planned works, and a desire to ensure that project management (time taken, quality and cost) is more efficiently pursued.
The “Grid Planning and Development” and “Engineering” Departments have been rolled into the new “Grid Development and Engineering” Department, whose core focus is implementation of the Grid Development Plan. Investment planning and NTG user connection management have been reallocated to a new “Investment Planning” Department which reports directly to the operations director.

In order to foster synergies in Plan implementation-related authorisations, negotiations with Ministries and local authorities (for authorisations process management), which was previously the responsibility of the “Grid Planning and Development” Department, have been brought back under the aegis of the Institutional Affairs Department.

Within Staff departments, organisational changes in 2009 included a spin-off of international business development activities (specifically regarding South-Eastern Europe and North Africa) from the Business Development and International Department to the Finance and Control Department, which was previously responsible for mergers and acquisitions. After this change, “Business Development” and “Finance, Control, International and M&A” Departments were formed, both of which report directly to the CEO.

Human resources

Changes in the number of Parent employees are shown below. It should be noted that at December 31, 2009, subsidiaries TELAT, SunTergrid and RTR do not have any employees.

CHANGE IN THE WORKFORCE


Terna 

Dec. 31, 2009Dec. 31, 2008 Change
Senior management 65 65 -
Middle management 488 485 3
Office staff 1,874 1,907 -33
Workers 1,020 1,067 -47
Total 3,447 3,524 -77

Data for both years do not include terminations with effect from December 31, and reflect continuing turnover associated with early retirement incentive plans.

Management incentive plans

Short-term management incentive schemes include an MBO plan for 2009 targeted at senior and middle management, related to the achievement of individual, department and company performance objectives.
As to long-term incentives, no 2006 Stock Option Plan options were exercised during the course of the year. The Extraordinary shareholders’ meeting of April 22, 2009 resolved to extend the date for exercising options allocated under the Plan from March 31, 2010 to March 31, 2013.

Long-term cash-based managerial incentives are available to top managers and key people under the cash-based threeyear Long Time Incentive (LTI) Plan, the purpose of which is to generate value and achieve the challenging performance targets set for the 2008-2010 three-year period.

Expected developments

In 2010, Terna will implement the human resource development and training programme set out in the two-year plan. The Company will take into account emerging requirements related to corporate strategy in providing training.