precondition
The suggestions that I left here so far is based on a precondition that after weighing all factors, pros and cons, that you still want to stick around and try to make things work. But if that's not the case, then you might want to something slightly different.
First, start looking for another job. Second, be a little truthful about your manager's incompetency with the director and maybe even ask for a transfer as somebody suggested above.