In this study we used a two-phase exploratory sequential design consisting of qualitative and quantitative research methods to assess leadership coaching as a leadership development tool. A focus group study combined with a review of theory resulted in hypotheses linking coaching to increased leader role-efficacy (LRE) and leader's trust in subordinates (LTS). Using data from leaders participating in a six month coaching program and a control group the results showed that LRE and LTS increased in the coaching group but not in the control group. We also hypothesized that increased trust in subordinateswould be related to subordinates' psychological empowerment and turnover intentions. A significant relationship between increased LTS and reduced turnover intentions was found. Finally we found that the degree of facilitative behavior from the coach positively affected the changes in both leader role-efficacy and trust in subordinates. While the results should be interpreted with caution as the sample is small our findings support claims that coaching represents a promising leadership development tool. Furthermore the results regarding trust in subordinates represent contributions to the development of a relational perspective on leadership development.