Former Watford manager Marco Silva has been strongly linked with the role at Goodison Park, but McFadden is "not totally convinced" that the former Hull City head coach would be the correct appointment.
"[Silva] started well at Hull I think, maybe turned them round but they still got relegated. He started well at Watford - the speculation kind of affected him I think and in the end, he lost his job," McFadden told Sky Sports News.
"At the time when they went for him initially, it looked like a good appointment, at the minute I'm not totally convinced. He has done a good job where he's been... but the Everton fans need someone who will bring the excitement back to Goodison.
"I know that they finished ninth at the end of the season but some of the fans weren't happy with the brand of football and unfortunately for Sam it cost him his job, he was brought in to turn it around and win games.
"He's done that but I think the fans are looking for a style of play, attacking and free-flowing and it just wasn't the case. They need to get their identity back."
McFadden, who left Queen of the South on a free transfer in January, had two separate spells at Everton - scoring 18 times in 147 appearances for the club.