I agree that Managers/Directors should have a deep technical experience but having them contribute code to the day to day development is not a good situation for anyone (especially the companay).

There are some different aspects to this; The director will have many other responsibilities and may not be able to provide to provide the research/expertise required to produce a good code solution to the issue at hand and integrated with the rest of the system.

The rest of the project team may be delayed with waiting for the directors code and may well find it difficult to co-ordinate with the directors level of knowledge (which is perhaps out of date). In general, criticising the director for delay or bad code is not likely to be a career-enhancing path.

In small company/start-ups, this a common condition that does need to be remedied. Directors/managers have significant responsibilities that needs to come first rather than feed their own ego/desires. Hire good people and direct them to scale the business, your job is different now and you need all your skill/time/resources to do it well.

In short, personally been there a number of times and it wasn't good for anyone. But we struggled on.