Yes, this is how most larger companies are, he is there, has been there for years, and most likely why there was a opening for you to come to work. If you try and fight him, normally you lose, since the company has put faith and trust in the older worker. And also, while you will be offended, sometimes the college way, or book way is not the way things are really done in real life, we used to have young college grad ( engineering) come to work and it took them 2 or 3 years to figure out that real life and what was taught in the book are too different things.
Also you have to understand that there is a company political system in place, and you will have to learn to work within that system.
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