A representative of Career Education Corp.'s largest shareholder has been named to the board of the for-profit education company, possibly signaling a showdown with management over lagging returns.

Greg Jackson, a partner at San Francisco-based Blum Capital Partners LP and co-head of its investment committee, has wanted a seat on Career Ed's board for a "long, long time," says someone who knows him professionally. A former analyst and partner at Harris Associates L.P. in Chicago, Mr. Jackson, 42, declined to comment.

Blum owns 18.5% of Career Ed's common stock outstanding - a stake that has doubled since Hoffman Estates-based Career Ed began overhauling management in March 2007 following regulatory probes into enrollment practices. Read full story.  (Chicago Business)