OS/2 icons are a lot of work. That is why I prefer making and using PNGs. The icon editor is limited and as a result makes working with it tedious. You really need 4 icons for the 4 sizes sizes used by the system. If one uses one large icon and lets the the workplace shell resize, it is a hit and miss as to what you get, especially when using the smaller sizes.
I usually make four separate icons in windows using the free Greenfish Icons Editor Pro. In fact, I make most of my PNGs using this editor, version 4.2. This is a powerful icon editor. It is a shame one of the few things it can't do is read OS/2 icons.
I make 4 PNG icon sizes
40x40
32x32
20x20
16x16
Usually you can resize 40x40 to 32x32 with a lot of touchup work.
I have found on the smaller sizes, 20x20 and 16x16, one cannot use the whole 40x40 icon. Thus I figure what I can leave out or reduce content to where people still know what the icon is from using the larger size icons.
I then boot to ArcaOS, and open the icon editor. I search for an OS/2 icon that has the color options I need along with the 4 sizes. I then use pmview to copy each png to the correct icon size on the icon I am using. Do a lot of touchup work and then rename and the new icon I modified from the original. I then test the large icon and small icons to see if it is readable.
As you can see, it is a lot of work creating a descent OS/2 icon.