Clive Wright left Shropshire Council in February last year after eight years with the authority.
It has now been confirmed that the council paid him £124,036 to leave his post – a decision the council has said was taken by former leader Peter Nutting, who lost his seat in May's local elections.
A spokesman for Shropshire Council said: “The council’s draft statement of accounts which has been published shows that the outgoing chief executive, who left the role with immediate effect in early 2020, received a severance payment of £124,036.
"This was a decision made by the former council leader and the payment was calculated in accordance with the council’s policy.”
Councillor Alan Mosley, leader of Shropshire Council's Labour Group, said people will question whether the pay-off was necessary, particularly in the current financial climate.
He said: "The is an extraordinary amount of money to force someone to leave the council. I am sure the council taxpayers throughout the county will be asking serious questions about why it was necessary and why Clive Wright was asked to leave."
He added: "People will also ask how this represents value for money in such a difficult financial climate."
It was revealed last month that the separate pension cost relating to Mr Wright's departure was £476,000.
Mr Wright left the council in the weeks before the pandemic began and in a message to staff at the time he said the decision had been agreed with Councillor Nutting.
He said: "I have agreed with the leader that I will leave my post as chief executive of Shropshire Council with immediate effect."
Mr Wright was replaced by Andy Begley, who is the council's current chief executive.