1. Report to HR.
2. Switch teams (new manager).
3. Quit.
IMHO (1) doesn't accomplish anything. Human nature is such that even the most empathetic, self-aware, fair people have a tough time changing their day to day habits and standards. The likelihood of a tyrannical manager somehow finding the light because some underling told them how they felt is infinitesimally unlikely.
Switch teams or quit, imo. (switching teams is kind of like quitting anyways) And start looking asap, since job searches tend to take a while.
Also,
4. Tell them how you feel.
My former coworker did this. Did not accomplish anything. However, when another team member left for a very prominent company which at this point had developed a track record of recruiting from our company, he did get a decent raise. (this doesn't help the root cause of the frustration at all, but letting your boss know that you're unhappy does make him realize that you might quit at any moment)
edit: I'm happy to be a sounding board in private if you think that'd help. Ping me on twitter and we can exchange contact details. (same ID as my HN ID)