Federal regulators on Monday adopted a plan to ensure that banks’ pay policies don’t encourage employees to take reckless gambles like those that contributed to the recent financial crisis, the Associated Press reported.

The plan, originally proposed by the Federal Reserve last year, was also endorsed by other key banking regulators: the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Nearly 8,000 banks would be covered by the plan.

Under the plan, the 28 biggest banks, including Citigroup Inc., Bank of America Corp. and Wells Fargo & Co., are developing their own plans to make sure compensation doesn’t spur undue risk taking. If the regulators approve, those plans would be adopted and bank supervisors would monitor compliance.

At smaller banks, where compensation levels are typically lower, banking supervisors will conduct reviews. Those banks don’t have to submit plans to regulators.

The regulators, among other things, suggest that banks carefully review “golden parachutes,” which typically provide senior executives with large payments without regard to outcomes, to ensure they don’t encourage undue risk-taking.

Many banks’ practices have been found deficient in curbing risk-taking based on an in-depth analysis by regulators, the Fed said. It has directed some banks – which weren’t identified – to take steps to fix their policies.

“Many large banking organizations have already implemented some changes in their incentive compensation policies, but more work clearly needs to be done,” said Fed Governor Daniel Tarullo, the central bank’s point person on the matter.

The regulators won’t actually set compensation. Instead, they would review – and could veto – pay policies they believe could cause too much risk-taking by executives, traders or loan officers.