The S is the 'SUID' bit. It means that when someone runs the program, it runs with ROOT permissions (or with the permissions of its owner, in that case, ROOT).
Do some Googling about Linux File Permissions for further details, and also read the man pages for 'chmod' and 'chgrp' for more related info.
As in the 'su' command, which means '
Switch
User', the SUID bit implies '
Switch
User
I.
D.'.
S can also mean GID or STICKY, depending on its location amongst the rwx's. You can also read about this when you Google File Permissions.