Lynch previously worked as the founding CEO of Sling TV, Dish Network Corp's online streaming service.
Pandora shares were up 4.5 percent at $8.45 in after market trading.
The company had faced a management reshuffle in June after Sirius XM Holdings Inc, controlled by media mogul John Malone's Liberty Media Corp, said it would invest $480 million, get three board seats and the right to pick the chairman.
Following the Sirius XM announcement Pandora's co-founder Tim Westergren stepped down as chief executive and board member.
Pandora on Monday also appointed Michael Lynton, chairman of Snap Inc to its board.
(Reporting by Laharee Chatterjee; Editing by Shounak Dasgupta)
