Swiss voters have approved measures to curb executives' pay and outlawed golden parachutes that can result on directors pocketing multimillion-pound payoffs.

Exit polls suggested almost 68% of those who turned out for Sunday's referendum, and all of Switzerland's 26 cantons, were in favour of the measures, which also include giving shareholders a binding vote on executive pay, banning golden hellos and banning bonuses that encourage buying or selling firms. Boards of directors that fail to comply face jail terms.

In Zurich, Switzerland's financial capital where polling stations remained open until 6.30pm local time – as opposed to noon in other cantons – analysts were suggesting that an overwhelming majority of 71% of voters approved the Minder initiative.

"The people have decided to send a strong signal to boards, the federal council [Swiss government] and the parliament," Thomas Minder, the businessman and Swiss senator behind the measure, told the state broadcaster, RTS. Minder said he was not surprised by the projected results.

The draft law, which covers Swiss companies listed on Swiss or foreign stock exchanges, is likely to put pressure on David Cameron, who has signalled his intention to object to proposals put forward by Brussels for a cap on bankers' bonuses.

The Eurogroup of finance ministers meets on Monday to debate proposals for the cap, announced last Wednesday, which would mean that bankers face an automatic limit on bonus payouts of one year's salary, or twice their salary if a majority of shareholders agree.

George Osborne or the Treasury minister Greg Clark will represent Britain to relay what No 10 described as real concerns about the proposal.

The Swiss law would limit the mandate of board members to one year, and would ban certain kinds of compensation, including the golden handshakes or golden parachutes given to some executives when they join or leave a company.

It also outlaws bonuses paid for takeovers or for the sell-off of part of a business.

If a similar law were passed in the UK, several high-profile business leaders would be out of pocket. Marc Bolland, the Marks & Spencer boss, struck a £15m deal in 2010 that included £7.5m compensation for lost bonuses and shares that he would have received in his old job.

Switzerland has escaped the worst of the economic crisis that has hit the European Union, of which it is not a member.

The legislation was sparked by public anger over pay and bonuses for senior bosses.

Among those whose remuneration has caused ire is Daniel Vasella, the former head of the pharmaceuticals giant Novartis, who was paid a total of 15m Swiss francs (£11m) in 2011.

Voters were outraged by plans to pay Vasella a further 72m-franc golden parachute over the next six years, on the condition he did not work for rival companies, after he stepped down last month.

In the face of such public anger, Novartis subsequently announced that Vasella, who has run the company since 1996, would forgo the sum.

However, he remained the focus of public anger over what are seen as pay abuses.

Minder says the massive sums demonstrate that company boards have lost control of pay and prefer to fork out "astronomical" salaries rather than pay dividends to shareholders.

Minder told the Swiss daily Le Temps that the only solution was to give shareholders the power to set pay. If his law is passed all compensation packages to board members and company heads would need their approval.

According to the proposed law, executives of listed companies who failed to abide by the new rules could face up to three years in jail and fines amounting to up to six years' salary.

The Swiss government and the upper house of parliament opposed the initiative, warning it could provoke an exodus of big companies.

Minder rejected this, saying that the level of disquiet over executive pay and bonuses in other countries meant his initiative could become Switzerland's "best export product".

"It's a great advantage for investors," he said, suggesting that instead of chasing companies away, such a law would entice investors to set up firms in Switzerland.

He said he hoped other countries would be inspired by the initiative.

If voters approve the Minder initiative, the government will draw up a proposed law to present to parliament, a process likely to take a year.