Patricia Soldati's Answer:
What you describe is worse than dismal leadership - it's the classic schoolyard bully. And worse yet, a Board that doesn't seem to have the courage or will to do anything about it.
Left unchecked, it's a formula for continued frustration and turnover, and, I sense, a situation that will only be resolved with courageous confrontation by several employees with one or more Board members.
Understand that any action to change this situation involves risk - of revenge, demotion or even firing. If your moral compass is ready to accept this risk, the best approach may be to leverage a "safety in numbers" strategy.
Can you gather several other determined colleagues, and together approach an HR and/or Board member - specifics (such as turnover rates, costs of hiring and training, potential law suits, sabotage of the vision of the organization) in hand? Perhaps even threaten to leave en masse?
Short of strong, massive action, you'll get plenty of opportunity to be a "glutton for punishment". Not surprisingly, others have taken the path of least resistance. Yet until there is a stronger, more forceful presence, the playground bully will continue to swagger and browbeat at will.