In those financial institutions, there are many experts in management and financing. If the institution holds large part of an enterprise's shares, as a big shareholder, it has the right to choose or to designate representatives in the board of directors. Then if someone has the chance to work in such a financial institution, does it mean he will have more chances to be a director or even the chairman of the board of directors?

Your inquiry about whether a financial staff is more likely to be a director of other industry, is pretty natural. We get used to see a CEO working in a business body from junior employee, step by step, therefore raise concern whether hedge fund manager take charge of CEO position will do any benefit for shareholders.

But as far as I know, most board members instinctly resist orders from financial investors. It is weird, at first glance, given that investors like hedge fund and pension seems no difference with other common share holders.

Here presents the dilemma of hedge fund shareholders: They could monitor the governance and operation of firms because they care the stake they place on  firms' performance; nevertheless, hedge funds do not care the fundamental of firms (pension fund might be better), provided their objective is to cash out their shares at a higher level, to compile a decent annual report for their fund contributors. They are not prudent, comprehensive and long term investors like founders are, or rather, they are cruel, profit driven beasts just intending to grasp a share of firm's growth.

Actually, even if a hedge fund manager is elected as proxy in board, he won't stay too long. He just left after he get the profit and trust me, he can find better salary from his original position in hedge fund. Interesting thing is usually such proxy designated by financial investors, is from industry itself. Say, a retired CEO of P&G is recruited by Blackstone, to monitor its portfolio over hair-washing industry; or a senior manager resigned his job from Microsoft, to join SilverLake, taking charge of its high tech venture investment.

Based on my opinion, such financial involvement into corporate governance does more benefit than harm, since there are so many trash managers across so many firms.

There are so many issues in American corporations, not to mention ours.

THX so much!