Feb. 25 (Bloomberg) -- Nortel Networks Corp., the Toronto- based phone-equipment maker that filed for bankruptcy protection last month, proposed $45 million in incentive pay for 92 senior executives and other employees.

The company asked a judge to approve two incentive plans, which would be tied to cost-reduction goals, according to filings today in U.S. Bankruptcy Court in Wilmington, Delaware.

“Nortel’s key employees are highly sought after by Nortel’s competitors,” the company said in the filing. “If these key employees resign, the debtor’s operations will be significantly impaired.”

The incentive payments would go out in installments over the next 18 months, according to the filing.

Nortel Networks Corp. plans to cut 3,200 jobs worldwide over the next several months, the company said Feb. 25.

The company filed for bankruptcy protection in January after losing more than $4 billion in the past year as phone companies curbed spending to cope with the slowing economy.

The case is In Re Nortel Networks Inc., 09-10138, U.S. Bankruptcy Court for the District of Delaware (Wilmington).

To contact the reporter on this story: Karen Gullo at kgullo@bloomberg.net

Last Updated: February 27, 2009 22:37 EST