96.8%
of employees hired on permanent contracts
3.3
million euro
used by employees in 8 areas
with Hextra in 2017
25%
of the variable remuneration
of managers was dependent
on achieving sustainability targets

Bonus system related to short-variable remuneration

Starting from 2006, the incentive system of the Hera Group has been linked to the balanced scorecard system: according to this system, the variable component of each manager and middle manager is calculated as a percentage value of gross annual salaries and is defined on the basis of results obtained relative to the objectives defined at the start of the year. The balanced individual scorecard is structured in three parts:

  • the first consists of specific project-objectives deriving from translation in operating terms of the objectives contained in the Group’s strategic map;
  • the second contains the economic objectives defined in the budget for the year;
  • the third involves an assessment on the behaviours set forth in the Group leadership model.

The structure of the balanced individual scorecard, or the weights assigned to the three areas, vary according to the seniority of the employee and the department he/she belongs to.

The final assignment of the bonus is weighted, furthermore, according to the results reached insofar as certain Group parameters: financial-economic business results and customer satisfaction index for residential customers.

The assignment of the objectives to employees and the assessment of their achievement take place through a clearly defined process which is based on the decision of top management for the individual balanced scorecards of the directors and managers and of the directors for the individual balanced scorecards of the middle managers. The activity takes place with the coordination of the Balanced Scorecard System Management function within the Corporate Social Responsibility department.

In 2017, 52% of the variable remuneration of Hera Group managers was linked to the completion of the project-objectives planned in the balanced scorecard system: 31% was linked to the achievement of the economic and financial budget objectives and the remaining 17% to compliance with the behaviours set forth in the leadership model. The balanced scorecard system involves 98% of Group middle managers and managers.

For managers, 70% of variable remuneration was linked to the completion of the project-objectives planned in the balanced scorecard system and/or achievement of the economic and financial budget objectives, while the remaining 30% to compliance with the behaviours set forth in the leadership model.