The present investigation was a three-source test of the intermediate linkages in the leader political skill–leader effectiveness and follower satisfaction relationships which examined transformational and transactional (i.e. contingent reward behavior) leader behavior as mediators. Data from 408 leaders (headmasters) and 1429 followers (teachers) of state schools in the western part of Germany participated in this research. The results of mediation analyses based on bias-corrected bootstrapping confidence intervals provided support for the hypotheses that political skill predicts both transformational and transactional leader behavior beyond other established predictors and that transformational and transactional leader behavior mediate the relationships between leader political skill and leadership effectiveness. The contributions to theory and research strengths and limitations directions for future research and practical implications are discussed.