I get the argument about the ex-Verizon employee - the much bigger conflict of interest is that such a person is a future-Verizon employee, as the fate of other such officials in e.g. finance sector illustrates; we get regulatory capture because the industry lobbyists promise and hand out lucrative deals to individual regulators after their term is done.

Employees do have an interest in their old companies. If nothing else working for successful companies is a good sign on a resume. But, high level employees often have close ties to other people in management and a much easier time being brought back.

> If you have an ex-Verizon person they shouldn’t have any loyalty to the company.

Yes, and people should be good at all times and not lie.

They don't necessarily have loyalty, exactly, but they do have a detailed understanding of the company's point of view and interests, coupled with possibly a much shallower understanding of the viewpoints and interests of the public.

ex-<company name> execs almost invariably have plenty of equity and personal connections with their former employer and the industry at large, so that would de facto disqualify pretty much all of them.