Policy Documents

Biography of Bartley J. Madden

Harriette Johnson –
May 16, 2007

Bartley J. Madden, bartmadden@yahoo.com, is a Heartland Policy Advisor whose current research focuses on FDA reform, corporate governance, and accounting/valuation issues.

Since his retirement as a Managing Director of Credit Suisse in 2003, Madden has written articles that developed a market-based system for access to not-yet-FDA-approved drugs. In May 2007 Heartland published a booklet, More Choices, Better Health: Free to Choose Experimental Drugs, that summarizes this work.

His 2005 monograph, Maximizing Shareholder Value And The Greater Good, explains macroeconomic wealth creation in terms of the microeconomics of pursuing maximization of shareholder value, emphasizing the long-term mutual interests of shareholders, employees, and customers.

After receiving a BS in mechanical engineering, working as an engineer, and spending time in the Army during the Vietnam War, Madden then shifted gears and earned an MBA at the University of California, Berkeley. His first job in investments was with a major Chicago bank. In 1970 he co-founded Callard, Madden & Associates, where he spent 14 years developing the CFROI (cash-flow-return-on-investment) valuation model widely used by large money management firms today. Then he managed portfolios for Harbor Capital Advisors and continued his empirical research on the CFROI framework.

He has maintained an ongoing interest with the deeper issues of inquiry and reliable knowledge. His first writing on this topic was “A Transactional Approach to Economic Research,” which appeared in 1991 in the Journal of Socio-Economics. For more background on his research methodology views, see his website www.LearningWhatWorks.com.

Madden joined HOLT Value Associates in the early 1990s, a firm created to commercialize the CFROI framework worldwide. He began writing on corporate finance, with articles published in the Journal of Applied Corporate Finance, Journal of Portfolio Management, Wall Street Journal, Journal of Investing, and other business publications. In 1999, his book, CFROI Valuation: A Total System Approach to Valuing the Firm, was published by Butterworth- Heinemann. HOLT was acquired by Credit Suisse in 2002.