Smith has conceded that his fellow Scotsman could one day end up in the hot seat of a so-called top-four club.
He told the Daily Star Sunday: "I'll not be the first to say that David has done a fantastic job at Everton. They are a wonderful football club.
"But they don't have the same financial resources as other clubs. I am sure he has ambition and that one day he would like to manage a top-four club."