Ex-Barclays boss Bob Diamond, 60, would receive a year's pay and a cash payment instead of a pension, together worth £2 million ($3 million), Barclays Executive Chairman Marcus Agius said.
Bob Diamond is due to appear before the cross-party Treasury select committee, a day after he resigned from the helm of Barclays in the wake of the Libor fixing scandal.
Diamond said he "looked forward to fulfilling" his appointment with Parliament, though he had resigned from the post of the chief executive of the bank.
Diamond's disclosures before the select committee are expected to create ripples in political circles, as he had already dragged the Bank of England (BoE) into the controversy by indicating that the BoE's deputy governor and senior Whitehall officials were aware of the Libor manipulations.
Barclays published a 2008 internal note which claimed that the BoE was aware of the rate manipulations.
Barclays' memo suggested that government officials had contacted Paul Tucker, the then deputy governor of the BoE, to express their concerns about the Libor inter-bank lending rate.
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"Mr Tucker stated the levels of calls he was receiving from Whitehall were senior and that, while he was certain that we did not need advice, that it did not always need to be the case that we appeared as high as we have recently," Diamond wrote in his note.
It has yet to be seen whether Diamond will reveal who the "Whitehall seniors" were during his appearance before the select committee.
Barclays' claims were refuted by Alistair Darling, chancellor at that time. He said he could not imagine the BoE asking Barclays to take such action.
"What Bob Diamond or Barclays appear to be saying is that the Bank [BoE] told them to do this," Darling told Channel Four.
"I would find it absolutely astonishing that the bank would ever make such a suggestion and, equally, I can think of no circumstances that anyone, certainly in the department which I was responsible for - the Treasury - would ever suggest wrongdoing like this," he added.
Barclays was fined £290mn ($450mn) by US and the UK authorities on 28 June for allegations of manipulating the Libor.
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