"So, in this case the board decided that it wasn't working out and decided that we should do a reset and that is what we have made a decision to do", he said. "We are very grateful for all her hard work".
The board is appointed by the federal government, with Milne, who is also chairman of MYOB and a former NBNCo director, chosen for the role by his friend and former PM Malcolm Turnbull a year ago.
David Anderson, now director, entertainment and specialist, will serve as acting MD until a new appointment is made in the coming months.
Faine, who hosts the morning program on ABC radio in Melbourne, said Ms Guthrie "wouldn't advocate for us, which is an astonishing fail".
Sally Neighbour, the executive producer of the ABC's flagship 4Corners program, also hit out at Ms Guthrie following her shock dismissal.
ABC staff quickly reacted to news of her departure.
"Directors resolved that it was not in the best interests of the ABC for Ms Guthrie to continue to lead the organisation", he said in a statement on Monday.
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However he said political leaders did not pressure the ABC or have any involvement in its decision to sack Ms Guthrie.
"We appreciate that a change of leadership creates uncertainty, however, we are firmly of the view that the decision is in the best interests of the organisation".
Australian-born Guthrie trained as a lawyer and worked at Foxtel and BSkyB, before taking pan-Asian roles at Star TV in Hong Kong and latterly at Google, in Singapore.
Her appointment as the first woman to run the ABC was criticised because she had no journalism or public broadcasting experience.
And she rejected Communications Minister Mitch Fifield's suggestion that the ABC could easily accommodate the latest 1 per cent efficiency divided required by the government.
Guthrie escalated her rhetoric from there, acknowledging that her contract included a clause permitting the board to oust her "without cause and with immediate effect", but claimed there was no clear reason for them to do so.
ABC board chairman Justin Milne.
The host of the ABC's nightly news bulletin in Sydney, Juanita Phillips, also weighed in on the sacking. The Federal Budget this year froze the ABC's funding CPI indexation, resulting in a $83.7 million hole over the three years from July next year.