The school i work for pays $13 an hour, while charging the student for $60/hr just for the instructor. Crazy, aint it? Then they wonder why CFI's leave after 6 months and there are no qualified instructors around who can teach initial-CFI applicants. You should see the backlog at our school. Its unbelievable.
Yup, same here. $15/hour base pay for instructors while the school charges $49/hour for our services, and we're only logging ~40 flight hours per month. Suffice to say, instructors disappear overnight, and quite a few have walked on their contract or are simply paying it off early (the school will pay for your MEI if you sign a 1 year training contract...can you say RIPOFF? Luckily I got my MEI elsewhere). There's just no incentive to be here beyond what's necessary.
It won't improve any, though. We're a university. The university trains most of the school's instructors through their own courses, so there will always be a constant influx of instructors, no matter how many leave. The only way it would improve is if the instructor applicants actually knew what was going on and would tell the school to take their job and shove it.