We obtain the most general matrix criterion for stability and instability o
f multicomponent solitary waves by considering a system of N incoherently c
oupled nonlinear Schrodinger equations. Soliton stability is studied as a c
onstrained variational problem which is reduced to finite-dimensional linea
r algebra. We prove that unstable (all real and positive) eigenvalues of th
e linear stability problem for multicomponent solitary waves are connected
with negative eigenvalues of the Hessian matrix. The latter is constructed
for the energetic surface of N-component spatially localized stationary sol
utions.