Michael Woodford, the British businessman who was sacked as chief executive of Olympus after blowing the whistle on a £1bn fraud scandal, will receive a £10m payoff.
Woodford, who departed two weeks after taking the job, agreed an out-of-court settlement with the Japanese consumer and medical camera maker company last week, which was subject to ratification by the board.
"In today's settlement between myself and the company we reached a fair and amicable agreement, and I would like to take this opportunity to wish the new board well in taking Olympus forward," Woodford said. "It is a wonderful company with wonderful products and people and has a bright future ahead of it."
Last October Woodford, 51, was ordered to return his company mobile and laptop and told to take a bus to the airport after raising the issue of dubious accounting practices with the board. Over the following weeks, regulators uncovered an accounting fraud scandal stretching back more than a decade.
Olympus's shares collapsed by more than 80% in the wake of the scandal and are still trading at half the pre-scandal level. Woodford had demanded 10 years' salary – or $56m (£36.3m) – for wrongful dismissal.
Olympus also said on Friday that it was cutting 2,700 jobs, or 7% of its global workforce, by the end of March 2014 as part of cost-cutting efforts. It will scrap about 40% of its 30 manufacturing plants around the world by the end of March 2015. The company lost ¥49bn (£400m) last year.