Cagno, 56, who for six years has been superintendent of the 1,200-student Valley Grove School District, between Oil City and Franklin in Venango County, was previously assistant superintendent for Grove City Area School District.
His first official day is July 6 but he will work with Stokes beforehand during the transition, he said after the meeting.
Directors set Cagno's annual salary at $78,000; his contract expires June 30, 2003.
Cagno lives in Grove City but said he is considering moving to the district, which he described as "sound and solid.''
He said he wants to be the district's educational leader.
"I see lots of opportunities in this school district to make it even better,'' he said. "My intent was always to come back to this area.''
He said no one should expect to see any changes before school starts or change for change's sake.
Cagno graduated in 1964 from Thiel College, Greenville, with a psychology degree; from the University of Pittsburgh in 1974 with a master's degree in special education and rehabilitative counseling; and earned a doctorate in education administration from Pitt in 1977.
The board surprised Stokes last June when they opened his contract, which expires June 30, for applications.
The district paid a Pennsylvania School Boards Association consultant $5,000 to help with the search. Directors wouldn't say how many people applied.
Stokes, 56, who has been superintendent since 1986, declined to comment after the meeting about the hiring. He earns about $76,700.