This study finds leader genuine emotion does influence firm performance in two ways. First it can result in positive effect on subordinate attitude which, in turn, increases firm performance. Second, it can result in negative direct effect on firm performance after controlling for the indirect effects just mentioned. These results are interpreted herein to provide support to the claims by many (Ashforth & Humphrey, 1993; Gardner et al., 2009a; Humphrey et al., 2008; Hunt et al., 2008) that properly managed genuine leader emotion should lead to positive outcomes and improperly managed genuine leader emotion should lead to negative outcomes. Here, proper management is contingent upon displaying emotions that “correspond” with display rules, situational requirements, and audience expectations. Thus, it is recommended herein that leaders closely monitor their behavior, predominately using genuine emotional displays when appropriate and deep acting when their genuine emotions do not align with the requirements of their role.