I'm a less-than 30 year old developer. I've worked in organizations with 1:10 manager:dev ratio, sometimes higher. These managers did no coding whatsoever (some barely understood what we were doing), and spent their time inventing metrics, discussing/presenting these metrics, and making sure devs did the absolute minimum required to satisfy the customer because all they ever looked at were those metrics. While this may not apply to you, I can see where he's coming from. I now work for a company that has roughly a 1:70 ratio of manager:dev, and it's great. Devs participate in all levels of decision making, including the assignment of features/projects to younger devs, and oversight of their proteges. You could say that the managerial-level decision making is informally shared among the senior engineers. But they code just as much as I do. Coders are given independence and have ownership, and quality is their mandate. I hear Valve operates in a similar manner and their success mirrors our own. Ok maybe they are a bit more successful ;).
Good devs shouldn't stop coding unless they are bored with it. They should continue to work and be compensated according to their skill and experience. I feel a lot of firms have devalued experienced engineers to their peril. They dangle the $$ carrot in front of engineers who are at the top of their game, drawing them into an occupation where they no longer add demonstrable value to the company's products (again, not necessarily you), and then hire a newbie to fill the hole at the bottom rung. Worse, they farm out the work. The end result is invariably a crappier product.