Kermode, 48, will officially begin a three-year team Jan. 1. He replaces Brad Drewett, who died in May.
Drewett had led the ATP for just more than a year.
Kermode played on the ATP for several years in the 1980s and was a highly regarded coach before becoming involved the front-office aspect of the sport.
Most recently he was tournament director of the Aegon Championships at London's Queen's Club and managing director of the ATP World Tour Finals.
"It's a huge honor to have been given the opportunity to lead the ATP during what is unquestionably one of the most exciting periods in the history of men's professional tennis," Kermode said. "I look forward to getting started in my new role and to working very hard together with ATP staff, players, tournaments and partners as we look to harness the full potential of our great sport in years to come."
Roger Federer, president of the ATP Player Council, said: "On behalf of the players, I am delighted to welcome Chris as our new ATP executive chairman and president. Chris has a lot of experience having worked in a number of different capacities in tennis over the years and he has all the attributes required to lead the ATP World Tour forward during this period of unprecedented popularity and success."