Lloyd, who marshalled the Windies to the top of world cricket during his illustrious playing career, will head up a new panel that also includes ex-pacemen Courtney Walsh, West Indies' leading wicket-taker in Tests, and Eldine Baptiste.
Courtney Browne, a former Windies wicketkeeper, has been retained on the panel, together with coach Ottis Gibson and the respective captain as a non-voting member.
Clyde Butts, the previous chairman of selectors, and Robert Haynes move aside as part of the changes, which were approved at a WICB meeting in Antigua last month.
In a statement on Saturday, director of cricket Richard Pybus said: "We welcome the introduction of Clive Lloyd - one of the true legends of West Indies cricket - to the selection panel for the first time.
"We are also glad that an iconic fast bowler like Courtney Walsh, and highly-experienced, former international player and coach like Eldine Baptiste have accepted to perform this important function.
"Courtney Browne is retained on the panel as both selector and regional talent manager with a specialist focus on youth and women's cricket.
"We look forward to their input as we continue to work on building a strong and sustainable cricket system that produces elite cricketers for the West Indies senior teams.
"We thank Clyde and Robert for their commitment and professionalism, and the job they have done in a challenging period in West Indies history and we wish them well in their future endeavours."
West Indies have also announced a 13-man squad for this month's three-match home ODI series against Bangladesh.
Dwayne Bravo will captain the side after recovering from the shoulder injury he picked up in the opening game of the 2014 Indian Premier League.
Chris Gayle, Kieron Pollard and Kemar Roach also return from their respective injuries, with Kieran Powell, Marlon Samuels and Dwayne Smith the men to make way.
West Indies ODI squad to face Bangladesh: Dwayne Bravo (captain), Darren Bravo, Kirk Edwards, Chris Gayle, Jason Holder, Nikita Miller, Sunil Narine, Kieron Pollard, Denesh Ramdin, Ravi Rampaul, Kemar Roach, Darren Sammy, Lendl Simmons.