LONDON (AP) — Tom McKillop, former chairman of the Royal Bank of Scotland, has decided to retire from the board of BP PLC, the oil company said yesterday.

McKillop has been embroiled in the political and public controversy over the £703,000 ($1 million) per year pension granted to RBS' former chief executive, Fred Goodwin. McKillop has rejected claims by government ministers that the bank was less than candid about Goodwin's pay-off.

Paul Myners, a government minister, has said the RBS board greatly enriched Goodwin's pension by allowing him to depart by agreement, rather than firing him for leading the bank in financial difficulty. RBS lost £24.1 million last year, the largest corporate loss in British history.

In a letter to the House of Commons Treasury committee, McKillop said Myners was given a full explanation of Goodwin's pension.

"At no stage did Lord Myners or another government representative suggest that Sir Fred Goodwin should be dismissed," McKillop wrote.

McKillop, 66, joined the BP board in 2004 as a non-executive director and served on the remuneration committee. McKillop, who was paid £95,000 last year by BP, has decided not to stand for re-election this year.

BP chief executive Tony Hayward said McKillop would be missed.

"Tom has provided wise counsel to me, my executive colleagues and, indeed, the entire board. I am sorry he did not feel he could continue to serve with us," Hayward said.