Legislation that would impose new curbs on executive pay was approved on Tuesday by a congressional committee, advancing a component of the Obama administration's broad plan to tighten financial regulation.

The bill was expected to go to the floor of the U.S. House of Representatives for a vote on Friday, aides said.

Drafted by House Democrats, the bill would give shareholders the right to cast non-binding, annual votes on executive pay and on special pay packages in changes of corporate control, such as golden parachutes.

The bill would empower regulators to ban pay structures that encourage inappropriate risks by financial institutions ... that could threaten the safety and soundness of covered financial institutions, or could have serious adverse effects on economic conditions or financial stability.

The measure was approved in a 40-28 party-line vote.

Republicans on the Financial Services Committee argued against the measure, saying it would give regulators too much power in setting private-sector compensation decisions.

We are basically in this legislation overreacting to problems that have occurred, said Republican Representative Michael Castle.

Democrats said the bill was needed to restrain soaring executive pay that encourages excessive risk-taking of the sort that helped cause the deepest financial crisis in generations.

Democratic Representative Alan Grayson said attempts to water down and delay the bill would only help irresponsible managers who loot their companies.