Mone has been interim chancellor since May and a UWM faculty member since 1989. He becomes the school's ninth chancellor.
Mone is succeeding Michael Lovell, who left earlier this year to lead Marquette University.
The new UWM chancellor is a professor of management. He earned his Ph.D. at Washington State University, his master's at Idaho State University and his bachelor's degree at Central Washington University.
Regarding his new appointment, UW System President Ray Cross praised Mone for having "strong connections with business leaders across the country, and he has a keen understanding of the role our UW institutions play as developers of the high-impact talent necessary to move Wisconsin forward."
Mone called UWM "a vitally important academic institution with an impressive alumni base, strong research profile, and deep community engagements." He said he knows that great things lie ahead for the university and the Milwaukee community.
Mone's starting salary as chancellor will be $340,000.