In a nutshell....
... it is the value of the officer contribution to the net profit of the corporation. Don't forget the other issues like working capital, equipment, inventory, other employees, financing, and I guess the list can go on and on. That is why coming up with reasonable compensation can be difficult to come up with. As long as you have a reasonable reason for setting an officers compensation you should have no problem with the IRS.
Having no officer payroll is inviting the IRS and possibly asking for all the net profits to be converted to officer payroll. Although, any strong posistion by the client rep should get some good results.
A good preparer would not let officer payroll be zero.
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