NEW YORK, Jan 17 (Reuters) - Goldman Sachs ( GS ) raised

CEO David Solomon's compensation 26% to $39 million for last

year, according to a filing, and its board lined up an $80

million stock retention bonus that signals he will stay at the

helm for another 5 years.

John Waldron, the bank's president and chief operating

officer was also awarded a retention bonus of $80 million in

restricted stock that vests in 5 years. He is widely seen as a

successor to CEO David Solomon.

"The firm is delivering strong performance and the board is

determined to maintain our momentum, ensure stability, and keep

in place a solid succession plan," said Goldman Sachs ( GS ) spokesman

Tony Fratto.

"The board is also evolving compensation to enhance the

firm's ability to continue to attract and retain the best talent

at a time when the competition for Goldman Sachs ( GS ) talent is

especially fierce, including from asset managers and other

non-banks," he added.

Goldman Sachs ( GS ) beat Wall Street estimates earned its biggest

quarterly profit in more than three years as its investment

bankers brought in more deal fees, while its traders benefited

from active markets. Its net income climbed to $4.11 billion in

the fourth quarter, the bank reported on Wednesday.