Cramer's 'Mad Money' Recap: Look Who's Toxic

Some companies would benefit from the departure of their CEO, Jim Cramer said on his "Mad Money" TV show Wednesday.

The latest addition to Cramer's "Wall of Shame" is Terry Semel, CEO of Yahoo!, which Cramer has in his charitable trust, Action Alerts PLUS.

Cramer believes that Semel proved himself to be a "master of the art of overpromise and underdeliver" when his company turned in earnings Tuesday that fell short of Wall Street expectations.

"You can't raise the bar really high and then implode," Cramer says. "And you certainly shouldn't be allowed to do it repeatedly."

Sam Palmisano of IBM and Charles Prince of Citigroup also make Cramer's list of toxic CEOs. But Cramer believes that Semel deserves the top spot.

On a more positive note, Cramer says Downey Financial is the best risk/reward stock he's talked about on the show in a long time.

On Monday, Wachovia reported a good quarter, surprising critics who didn't like the company's acquisition of California-based savings and loan Golden West. The bears believed the deal gave the bank too much exposure to the mortgage meltdown.

Cramer believes that Downey can be "the next Golden West" and that the stock price could double if it becomes a takeover target.

Additionally, the stock could also go up if the Fed raises interest rates or if shorts get busted for betting against it. Right now, 40% of Downey's float is held by shorts who believe that the company will be hurt by mortgage defaults.