re: Has anybody ever broke a cardinal rule with your boss and survived long term?

you only have one real choice here, talk to the President and Sr VP in some private way and let them know the situation and see what they have to say about it. if they value you as you feel they do they will arrange a way to keep you somehow under a different supervisor or dept.

the only possible result is they promote you (maybe into his position) or nothing happens and you are no worse off since you already know you have to leave to go to a better job