Jim's first impulse is to suggest they stand down from ceremony, to tell Rhade it's all right to call him Jim. He's a young captain, still new at it, and not among his Starfleet peers; he's more given, these days, to to favor familiarity over formality.

But some people--especially those who have served with some military or peacekeeping organization--enjoy the formality, are comforted by rank and ritual. Spock seems that way, and hell if this guy doesn't remind him of Spock. Jim thinks it over, and decides that maybe in this case, following protocol for now and giving the man time to warm up to him later is the best course of action.

So he nods his acknowledgement of the salute, and shakes Rhade's hand firmly. "Likewise, Mr. Rhade. I have to agree that company makes many things more bearable. And I'm glad to know Dr. McCoy was able to accommodate you." He smiles, and edges, just slightly, out of formality, adding, "He's my closest friend as well as being one of the most outstanding members of the fleet at large, not just my crew; I was happy to make the recommendation."