Abstract.We study an ultra-compact plasmonic modulator that can be applied in photonic integrated circuits. The modulator is a metal-insulator-metal waveguide with an additional ultra-thin layer of indium tin oxide (ITO). Bias is applied to the multilayer core by means of metal plates that serve as electrodes. External field changes carrier density in the ultra-thin ITO layer, which influences the permittivity. The metal-insulator-metal system possesses a plasmon resonance, and it is strongly affected by changes in the permittivity of the active layer. To improve performance of the structure we propose several optimizations. We examine influence of the ITO permittivity on the modulator's performance and point out appropriate values. We analyze eigenmodes of the waveguide structure and specify the range for its efficient operation. We show that substituting the continuous active layer by a one-dimension periodic stripes increases transmittance through the device and keeps the modulator's performance at the same level. The dependence on the pattern size and filling factor of the active material is analyzed and optimum parameters are found. Patterned ITO layers allow us to design a Bragg grating inside the waveguide. The grating can be turned on and off, thus modulating reflection from the structure. The considered structure with electrical control possesses a high performance and can efficiently work as a plasmonic component in nanophotonic architectures.