We study how corporate scandals affect workers. Following the revelation of misconduct, employee sentiment decreases sharply and persistently, driven by diminished perceptions of firm culture and senior management. Workers receive no compensation to offset the declines in job satisfaction. In fact, while base wages and fringe benefits remain unchanged, workers are 6 percentage points less likely to receive variable pay and those that do experience an average decline of 10 percent. Our results demonstrate that rank-and-file employees are not insulated from the effects of organizational wrongdoing and that variable-pay earners are particularly exposed to firm-level shocks.