How does FAR 61.113b work ?
Let's say I work for that widget company mentioned in the AvWeb article
and usually manufacture little widgets. For a trade show I am asked to
fly some sample parts using a rented airplane. It seems that the "no
compensation or hire" rule does not apply in this case and (given the
willingness of the CEO) I could charge the company 100% operating
expenses and "pilot bonus".

You are not being employed as a pilot. You are being employed to make
widgets. The fact that you choose to use an airplane instead of an
automobile to get to your widget show is not the pivot point. Your company
can rent you the airplane and pay your normal salary or hourly wage on your
trip. HOWEVER, you cobbed the system up by saying "pilot bonus". Now you
ARE being employed as a pilot and without a commercial certificate, you
can't do that.



Now let's say the CEO wants to go to that trade show as well. He would
be a passenger and now 61.113b2 applies since he is a passenger and
therefore I may not collect any money at all, thus have to pay 100% of
operating expenses myself.

Nope, same argument. You are not being paid to fly the CEO to the widget
show. The company can pick up the entire cost of the airplane and your
normal widgetworker salary while on the trip.

That's the way I read the regulation.\


Jim