The pay-off made to former BBC director general George Entwistle - who quit in the wake of the Jimmy Savile sex abuse scandal - has been criticised by MPs.
The £450,000 paid to Mr Entwistle after just 54 days in the job was a "cavalier" use of public money, the Commons Public Accounts Committee said.
The BBC Trust said it was made in order to ensure he left quickly, and was the best available in the circumstances.
On Wednesday the BBC was criticised for its handling of the Savile scandal.
The Pollard Review found there was "chaos and confusion" at the corporation over a Newsnight report which was dropped in December 2011 - but concluded senior managers had not instigated a cover-up.
The review dismissed claims the six-week Newsnight investigation was dropped to protect tribute programmes to the TV presenter and DJ, who died in October 2011, aged 84.
'Rewarded for failure'Mr Entwistle resigned last month in the wake of the Savile scandal.
End Quote Margaret Hodge Chairwoman, Commons Public Account CommitteePublic servants should not be rewarded for failure. But that was exactly what happened"
After less than two full months in the job, he left with a pay-off worth £450,000 - double the amount specified in his contract - along with a year's health insurance and money for PR advice.
In its report, the Public Accounts Committee said that was out of line with severance packages in the public sector, and was an "unacceptable use" of public money.
Committee chairwoman Margaret Hodge said: "Public servants should not be rewarded for failure. But that was exactly what happened when the BBC Trust paid off the former director general, George Entwistle.
"In order to speed his departure, he was paid £450,000, twice what he was contractually entitled to, and then, if that were not bad enough, 12 months' private medical cover and a contribution to the cost of his legal fees and public relations advice were added to the package.
"This cavalier use of public money is out of line with public expectations and what is considered acceptable elsewhere in the public sector."
Speaking on Radio 4's Today programme, Mrs Hodge said Mr Entwistle had received "a package of benefits that left us astounded".
She said there was a disparity within the corporation between "those who don't get paid a lot" and "a management tier who, I don't think, get it".
"They don't get it that they are being paid through the licence fee, which is a form of taxation," she said.
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Acting director general Tim Davie defends the BBC's response to the Pollard Review
The committee also said it was "extremely concerned" that the BBC Trust rejected an offer for the National Audit Office (NAO) to examine the payments made to Mr Entwistle.
"This inhibited Parliament's ability to hold the Trust to account for its use of public money," the report said.
MPs also criticised the benefits and severance packages for other senior staff at the corporation as "excessively generous" - including one of nearly £1m to the former deputy director general Mark Byford, who left last year.
"Since 2010, over £4m in total has been made in severance payments to 10 other departing senior managers. The BBC is also providing 422 senior managers with private medical cover as part of their remuneration packages," said Mrs Hodge.
"We have asked the Comptroller and Auditor General to include in his 2013 programme of work on the BBC an examination of severance payments and benefits for senior managers."
A BBC Trust spokeswoman said: "Of course £450,000 is a very substantial sum, but the terms reached were the best available in the circumstances. As already explained to the Public Accounts Committee and the Culture, Media and Sport Select Committee, it is simply wrong to suggest the BBC Trust had a choice between a severance payment of £450,000 or half that level.
'Basic checks'"Indeed, if we had faced a constructive dismissal situation it would have cost us more and could have been a messy and long drawn out process. It is also not the case that the Trust refused to take up the offer to review the package - on the contrary, we suggested a wider study of severance payments at the BBC, which the NAO will now undertake."
The findings of a separate report into a Newsnight programme that led to Lord McAlpine, a former Conservative Party treasurer, being wrongly implicated in a child sex abuse scandal were also released on Wednesday.
The report found Newsnight failed to complete "basic journalistic checks" and there was confusion about who had the ultimate responsibility for "final editorial sign-off".
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Nick Pollard's statement in full
The editor and deputy editor of the current affairs programme are to be replaced, it was announced after the report's release.
The separate Pollard Review, which cost £2m, involved the examination of 10,000 emails and detailed interviews with 19 individuals.
In an interview with Newsnight, BBC acting director general Tim Davie defended the cost, saying: "It was right to spend that money because we had an allegation that was very fundamental to trust in the BBC."
He also defended the lack of sackings following the report.
"Success for me is not necessarily how many people I dismiss. It's about making a fair and proper judgement on the facts in front of me and making sure the BBC is in a position to rebuild trust," he said.
BBC Trust chairman Lord Patten said the corporation accepted the report in its "entirety".
Culture Secretary Maria Miller said the report raised "serious questions around editorial and management issues at the BBC" and urged the Trust, the corporation's governing body, to "help tackle these".
Another review led by Dame Janet Smith, looking at the culture and practices of the BBC during the years in which Savile worked there, is expected next year.
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