On Wed, 21 Nov 2007 18:00:49 -0800, Ron Garret
wrote:

Exactly. The problem here is the precise meaning of the word
"compensation" and whether or not compensation is distinct from
"reimbursement." There are two ways to look at the situation. One is
that I paid the entire cost of the flight and was reimbursed for a
travel expense. The second is that the company paid the entire cost of
the trip and therefore I did not meet the "pro-rata share" requirement.

Fortunately, when I was flying on business -- which was solely to attend
meetings and the business had nothing to do with aviation -- the
"structure" was that the corporation leased the a/c and paid all of the
operating expenses. I would occasionally (rarely) carry a passenger to the
meeting, but the passenger would not be charged. In addition, and perhaps
critically so in view of the controversy regarding logging time as
compensation, I have a commercial certificate and, at the time I made these
flights, a 2nd class medical.

But when I made those flights, the FAA ruling concerning logging time as
compensation had not been promulgated, and the general opinion was that
those flights would have been legal even if I only had a private
certificate or a third class medical.
--ron