Garlick joined Arsenal in 2021 as Director of Football Operations before taking over as Managing Director last year.
"We are delighted to promote Rich to CEO after an incredibly successful period as Managing Director of Arsenal," co-chair Josh Kroenke said in a statement.
"Rich has made an enormous impact on all fronts as we continue to strive to win major trophies, be financially sustainable and put our supporters at the heart of everything.
"At this moment, we would like to thank Tim for his continued dedication and commitment to Arsenal in a period of transformational change for the club. He has played a pivotal role and ensured we are in a great position to continue to deliver our strategy in our ambition to win major trophies.
In a further re-shuffle to the board, Kroenke Sports & Entertainment's (KSE) Kelly Blaha and Otto Maly join as Non-Executive Directors alongside long-time KSE advisor, Dave Steiner.
Producer and director, Ben Winston, an Arsenal season ticket holder for over 30 years, will also join the Board as a Non-Executive Director.
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