But even if there is a mismatch between OP's perceived competence and actual competence, it's a good time to leave, as it's probably a career dead end.

Why stay where you are, in the most clear terms, unappreciated?

You're asking to be reorg'ed out of the company anyways. This is one case where following your pride is the right option. It's like ending a bad relationship; things will only get worse.

Better yet, if he wants to express loyalty to his team, work his personal network on the side to get each of his team members hired at a more appreciative company, and be the _last_ one to jump ship, only after all the direct reports have safely been "rescued" via better employment opportunities.

Of course, companies screw people over, and treat them like shit at times, try to violate your hiring agreement, don't tell you your options. But actively finding your team jobs is foolish, and definitely something they can sue you over. And a new company would be worried you might do it again.

That's not obvious at all. In large companies there's often a fixed pool. Are other departments struggling even more? Are other departments significantly below market so the pool gets reallocated? 'Manager' could mean many things in large companies, and often being gets caught in the middle.

> don't want to work for a manager perceived to be weak

Again, jumping to conclusions with no evidence.

> was unable to even prevent the bonus pool that was initially earmarked for that team to be taken away and given to another dept

This depends on how OP communicated it, on how to set expectations, which they didn't mention and again jumping to conclusions.

> Seems like both sides would have no problem replacing the OP with someone else.

How? Why?