McGrath will take over from Stephen Berman, who will remain at the company as co-founder, secretary and CEO.
McGrath, a 15-year veteran of the toy industry, joined Jakks Pacific in 1999 as vice president of marketing and product development, moving up to senior vice president of operations in 2000 and then executive vice president of operations in 2008.
Before he joined Jakks, McGrath enjoyed a stint at Mattel as marketing director.
"Jack has demonstrated leadership throughout his years with the company, and his high level of experience and business acumen makes him the perfect choice to be our COO,” commented Stephen Berman, president and CEO of Jakks Pacific.
"He has immersed himself in all aspects of the company’s operations, has built and maintained strong relationships with our licensors, and has been instrumental in integrating the operations of the businesses during his dozen years with the company.
"Jack demonstrated ability to execute the strategic vision of management and the Board, and has been a key to our success in growing the company through acquisitions, strong licensed properties and our ability to create home-grown products."