People with large positions are incentivized to make the company better and can also sell shares at intervals.
Even corporate raiders like Carl Icahn accumulate large shares, and attempt to change the company direction so they can sell at a higher price.
The above two groups have lots of cash and have a diversified portfolio.
Long time employees with positions that are a large portion of their net worth can typically sell calls over their stock to get additional income. Although there is a HUGE knowledge gap amongst this class of people, this group is typically married to their position and will pay extra to print out paper certificates of their shares to give to their children. Most do not hedge and rely on dividends if applicable, but this group is the kind most able to benefit from hedging. Trying to time the market is bad for this group, so selling covered calls is the best way, and reinvesting the call income can average out their cost basis to make market movements less consequential.
No they don't get free put options, but their cost basis is often lower and/or averaged out over time.
Large corporate raiders can negotiate as many conditions as they like to protect against losses. Such as immediately granting themselves more shares if the market price decreases (which they can sell on the open market). You can get as crafty as you like, when you have negotiating power.