"it says to reduce the amount on line 7 by the credit, but then my officer wages are really understated when the IRS would compare them to "reasonable compensation". This is what I was trying to avoid."

Well, are you pushing the line for "reasonable?"

"If the corporation claims a credit for any wages paid or incurred, it may need to reduce the amounts on lines 7 and 8. See Reducing certain expenses for which credits are allowable, earlier. Also reduce the amounts reported on lines 7 and 8 by the nonrefundable and refundable portions of the new CARES Act employee retention credit claimed on the corporation's employment tax return(s)."

From the 1120S instructions.