I had an experience at my current job about six months ago that almost had me walk out. You can read the details here (including a "skip-level" meeting of sorts and how it went).

From that experience I came away with a few realizations:

-Standing up for yourself is importantt: after the experience in question, I notice a definite change in the way I was treated by management. I’ve started being given bigger responsibilities now that I’ve demonstrated that I know how to handle myself; due to being tasked with some very visible projects now almost everyone in the company knows who I am, leading to a new job opportunity within the company (it’s likely I’ll talk more on this in a new post at some point). The converse is that if I’d suffered in silence I’d always have existed in the shadow of my “manager”.

-You always pay a price for going over someone's head. It's up to you if this is worth it, but even if the issue is "resolved" (as it was in my case) it will always be known that you skipped a level- not just the person that was skipped but to the others around you. I was definitely branded for a time as a person who'd "run to the boss" when there was an issue. However, the future bore my stance out and I have weathered the storm well enough.

I know my issue wasn’t spot on with what you’re dealing with, but I learned a lot and hope it’s helpful.

One more little experience, though. As far as compensation goes, I’m highly reticent to approach this subject at all. I figure I should do my work and my company should pay me what they think I’m worth. Not a good attitude for getting ahead. So when I first got here, the company made it VERY clear they wouldn’t be paying for my relocation. I humbly accepted that, simply wanting the job, and then moved my life to a new city so I could work. Three months later I was happily working away but feeling the pinch of the move cost. After a LOT of prodding from a coworker I went to my boss and meekly asked for moving compensation now that I’d proven I was a solid employee who would stick around. He didn’t even blink and within a week he cut me a check. So sometimes it pays to address these issues, even if it isn’t in our nature.