Yes, but...
1) the time allocation has to be clearly set and adhered to, with much more allocated to management than the average engineer realises is required. Just as devs wildly under-estimate dev tasks, they wildly under-estimate how time-consuming leadership and management actually is. Frankly most devs think it's literally no work at all, until they actually try it ;)
2) as they become more senior it needs to shift correspondingly to focus on non-critical-path code. Tasks that keep them in touch with the dev experience, keeps them writing code, but doesn't block the team or require days of uninterrupted time to complete. Shared projects shipped as packages can be ideal as they often have a non-blocking release cycle. Otherwise pick up bugs and small improvements, things that can slide back a release without major impact. It may ruffle the ego because it feels a bit junior, but the truly meaty stuff needs to stay with full time contributors.