WASHINGTON ( TheStreet) -- Finance tycoons beware: the curbing of executive pay has moved one step closer to law Friday after the House passed a bill that would empower shareholders to vote on management compensation packages.

The bill, which passed the House by a vote of 237-185, goes beyond even what the Obama administration had proposed.

As it stands, the bill would bar companies from giving bonuses that may embolden executives to make risky bets -- a direct response to the over-leveraged trades many firms made on such things as credit-default swaps, which played a significant role in the financial crisis.

Under such a law, shareholders would also be able to block corporate directors with financial links to a company from sitting on compensation committees.

The proposed rules would apply to firms with assets of more than $1 billion -- which would encompass the majority of the financial-services industry.

The bill's passage is widely seen as motivated by the oft-cited public outrage over troubled firms -- Citigroup ( C), Bank of America ( BAC), AIG ( AIG), for example -- dolling out six-figure-plus sums to its executives even while accepting many billions in government bailout money.

Legislators voted mostly along party lines, with Democrats generally supporting the bill, and Republicans generally opposing.

--Written by Scott Eden in New York
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