Sort of? You're describing either a healthy business, at which point their market value shouldn't be an issue, or management holding the business hostage because they prefer their salary to shareholders having a return.
Now the only options are to either cash out at a lower valuation and not make any money, or wait and hope the business grows to the point where you can get a higher total valuation despite the lower multiple and see a return on your capital.
But Ive been fed that the principal agent solution of equity and executive privilege prevents this! Next you'll tell me capitalism doesn't allocate resources efficiently.
This phrase is distilled nonsense. Executive privilege [1] has precisely nothing to do with the principal-agent problem [2].
[1] https://en.wikipedia.org/wiki/Executive_privilege
[2] https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...