In response to the exploitation scandal the company is embroiled in, 7-Eleven announced that Chairman Russ Withers and chief executive Warren Wilmot will leave their posts immediately.
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He said Mr Smith’s “detailed knowledge of the 7-Eleven business together with his breadth of experience across a range of boards is exactly what we need at present”.
In a written statement to news.com.au, Mr Withers said he had chose to bow out as chairman earlier than planned after receiving Mr Wilmot’s resignation.
Last month, Australian media found a few of the firm’s franchisees had been paying workers around the country about half the minimum wage.
In a statement, 7-Eleven also said work to resolve allegations of under paid workers had been ongoing.
He said it would be hard for him to lead the company amid the scandal and that a new independent chief executive was appropriate given the circumstances.
Michael Smith was appointed to the role on Wednesday following the resignation of predecessor Russell Withers, who stepped down alongside CEO Warren Wilmot and general manager of operations Natalie Dalbo.
Mr Withers will remain chairman of the 7-Eleven group holding company.
7-Eleven’s newly appointed chairman has admitted that the company and its franchisees failed “vulnerable” people with their recently unveiled widespread exploitation.
“Naturally this is a major decision for me to stand aside, however I will continue to be a shareholder and I am determined to make sure the company is in the right hands to move forward”, he said in a statement.
As a former chairman of the prestigious Australian Institute of Company directors, Mr Smith could well be the best placed person to steer 7-Eleven through the chaos.
Professor Allan Fels has been appointed to run an independent panel to identify underpaid workers and repay their missing wages.
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Mr Baily is a former chairman of the Australian Association of Convenience Stores and has held senior executive roles and directorships with companies including the Good Guys, The Swan Brewery Company, SPC Foods and Best Friends Pet Holdings, which he co-founded.
