According to The New York Times, the Obama administration will offer a proposal this week that will "seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, whose problems could pose risks to the entire financial system."

A part of this plan will supposedly require executive compensation to be more closely tied to the company's performance and financial interests, but no details have been announced.

If government officials comments so far are to be believed, this pay reform plan would not just apply to firms receiving bailout funds but all "large companies, including hedge funds, whose problems could pose risks to the entire financial system" - though once again there are no details yet on how this group would be defined.