Deborah Cadman, currently chief executive of Suffolk County Council, will take up the role at the West Midlands Combined Authority later in the year.
The role was advertised with a salary of between £160,000 and £180,000.
The 54-year-old is due to take over the running of the body in September. Details of 'relocation expenses', annual leave entitlement and 'other matters' have so far been kept under wraps.
Her previous role in Suffolk came with a £170,000-a-year salary. It is £108,500 more than the first elected West Midlands Mayor Andy Street who is paid £79,000.
Publicly-available documents state: "Following negotiations the final package agreed (with the discretion provided by the interview panel) is £187,500...
"As the negotiated pay is higher than the substantive pay range there will be no automatic increase in base pay other than any JNC (Joint Negotiating Committee) for chief officers nationally or regionally agreed pay increases. It should also be noted that there is no performance related pay approved for the post.
"Any change to either of these in the future will be the subject of a report to the Board of the West Midlands Combined Authority."
The authority said the extra £7,500 in salary can be paid for out of the remaining budget for the body.
A combined authority spokesman said: “The final package was as a result of negotiation between the WMCA and the new chief executive. A degree of flexibility will always be required when trying to secure the strongest candidate.
“Details of relocation and annual leave remain private.”
The West Midlands Combined Authority is a combined authority which brings together the four Black Country councils, Birmingham, Solihull, and Coventry to oversee issues like transport and infrastructure. It will be given £1.1bn over the next 30 years – or £36.5m a year. Discussions have just started over obtaining more powers and funding from the government.
Mrs Cadman, who is from Birmingham, will replace interim chief executive Martin Reeves, who will return to his post at Coventry City Council.
Pete Durnell, who was the UKIP mayoral candidate, said: "I am slightly surprised that Mrs Cadman has been given a £7,500 pay rise before even starting. Unfortunately I am not too surprised because this just compounds what people said from the start that the combined authority will just see more people in highly-paid public positions.
"At the rate it is going it will barely pay the salaries of the staff."
Mrs Cadman has held several senior posts in her career, including chief executive of the East of England Development Agency and chief executive at St Edmundsbury Borough Council as well as interim chief executive of Waveney, Mid Suffolk and Babergh district councils.
She has a degree in social administration and politics and a masters degrees in urban and regional economics and management from the University of Birmingham. Mrs Cadman was awarded an OBE for services to local government in 2006.
According to Suffolk County Council's public accounts, her pay went up from £155,000 in 2015/16 to £170,000 last year. Pension contributions last year of £45,500 took her overall earnings to more than £216,000.