Ex-England Women manager Mark Sampson was given nine months' severance pay and may pursue a wrongful dismissal claim against the FA.
The Digital, Culture, Media and Sport Committee heard evidence on Wednesday over recent allegations made against Sampson, who was dismissed from his role as women's head coach on September 20.
Independent barrister Katharine Newton's final report found Sampson "made ill-judged attempts at humour" in conversations with players Eniola Aluko and Drew Spence on two separate occasions.
The remarks were deemed - by matter of law - to be discriminatory on grounds of race within the meaning of the Equality Act 2010.
Greg Clarke has told MPs he will not stand down as FA chairman in light of the revelations regarding the FA's handling of the Aluko case.
Clarke was asked by Jo Stevens MP whether he would consider his position as she strongly criticised the FA's handling of the situation, saying: "I have never heard such shambolic evidence about the governance of an organisation as I have heard today."
But Clarke told the Committee he had never thought about resigning over the issue.
FA chief executive Martin Glenn had received a vote of confidence from the FA Board over his handling of the sacking of Sampson.
"There were systemic, historic failings which contributed to this mess," said Clarke.
"When I took the job, there was one other decent applicant. It's career death. I'm willing to risk my reputation to make it better. If it doesn't get better, it's my fault."