Former Cravath Swaine & Moore presiding partner Allen Parker has been named as the next top lawyer for Wells Fargo & Co.

Parker, who led the elite US firm as presiding partner from January 2013 to last December, will succeed James Strother, the bank's general counsel since 2003, who had planned to retire at the end of 2016 but stayed on to guide Wells Fargo through its sham account scandal.

In September, the bank agreed to pay $185m (£152m) to resolve claims that thousands of employees opened as many as two million accounts without customers' permission, in a widespread scheme driven by sales goals and potential bonuses.

Wells Fargo in November said it had set aside at least $1.7bn (£1.4bn) to face a wave of litigation associated with the fake account scandal.

The announcement of Parker's hiring comes a week after the bank cut compensation for eight top executives, including Strother, to "reinforce accountability". Strother will stay at Wells Fargo for the next several months to help with the transition, the bank said.

Parker (pictured) is set to start his new role on 27 March in San Francisco, where Wells Fargo is based.

"Allen is well known throughout the legal and financial services industries not only for advising some of the world's largest companies on their most complex legal matters, but also for his strong character, integrity and high ethical standards," said Wells Fargo chief executive Tim Sloan in a prepared statement. "His background and corporate experience make him the ideal leader for this role as his efforts will be instrumental in helping our company continue to rebuild trust, make things right with customers and build a better Wells Fargo."

Sloan, who was among the eight executives denied a 2016 bonus and other compensation, described Strother as an "extraordinary leader and strategic adviser".

"He has developed and led an excellent legal team, been a long-time advocate for team member engagement, diversity and inclusion, and mentoring, and exemplifies our values in all that he does. His impact will be felt for many years to come," Sloan said.

Bluechips don't get any more blue than Allen Parker

Parker has long represented big banks on corporate matters, and has worked with major clients including JPMorgan Chase, Citigroup and DreamWorks Studios.

"Bluechips don't get any more blue than Allen Parker," the late James Lee, then vice-chairman of JPMorgan Chase, told The New York Times in June 2012. "He has helped me tremendously as we built our investment banking business over the years."

A Cravath lawyer since 1984, Parker became a partner six years later. He was chosen as the firm's presiding partner in 2012, succeeding Evan Chesler. From 2007 until last December, Parker was chairman of the firm's diversity committee.

Cravath elected Faiza Saeed in July as the firm's new presiding partner. Saeed, an M&A partner, is the first woman to lead Cravath.

"Over the last 25 years, Allen has been one of the most respected banking lawyers in the US, a highly valued and admired partner in our firm, and a mentor to countless young people," Saeed said in a statement. "We are so pleased that Allen will now be joining our client of many years, Wells Fargo, and we look forward to continuing our relationship with him in this new capacity."

• For more, see: Should Wells Fargo have cut Its GC's pay?