However, in a letter to BBC staff magazine Ariel, Mr Smith said that critics were "ignoring" the fact that Mr Entwistle had an "exemplary career".
He said: "In all the endless copy and comment regarding the DG's severance pay, one important fact has either been played down or completely ignored.
"George devoted 23 years of his life to this organisation, building an exemplary career and earning the respect and devotion of everyone lucky enough to have ever worked with him.
"Anyone who doubts that need only to have experienced the atmosphere of sadness and disillusionment which hung over BBC Vision teams last Monday.
"Due to the ineptitude and silence of others, and the failings of a corporate structure which he was determined to reform, he has now lost his job and been the victim of a political and media witch-hunt, which is a damning indictment of the society in which we all now live.
"George has not been 'rewarded for 54 days of failure'.
"He has been compensated for having his BBC career destroyed in full view of the entire world. In the circumstances, it is the very least he and his family deserve.
"He should now have his privacy respected and be given time to recover from an experience which no-one would wish on their worst enemy, let alone a man of his intelligence, wit, vision, integrity and all round decency."
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