Rapper Jay-Z stepping down as Def Jam president

By Yinka Adegoke

NEW YORK (Reuters) - Universal Music Group said on Monday that Shawn "Jay-Z" Carter is stepping down as president of its Def Jam Records unit, effective by the end of the year.

Carter, 38, has been president of the rap label since 2005, and has signed acts including R&B singers Rihanna and Ne-Yo.

Universal said Carter, also top-selling rap artist Jay-Z, will continue recording for its Roc-A-Fella/Def Jam label. But the company did not give a reason for his decision to quit the executive suite.

"Now it's time for me to take on new challenges," he said in a statement. "I am pleased to have had the opportunity to build upon the Def Jam legacy," he added.

Carter will focus on his expanding franchise of 40/40 Nightclubs over the next year and other businesses, according to a source familiar with his plans.

Carter regularly tops the lists of richest hip hop moguls, and was No. 9 on Forbes' Celebrity 100, the annual list of the world's most powerful -- and best paid -- celebrities, with an estimated compensation of $83 million.

Carter, who has said he was a street hustler growing up in the Marcy public housing project in a tough section of Brooklyn, New York, has sold millions of records and launched an array of media and fashion businesses.

Though known for his cutting-edge rap lyrics and rags-to-riches story, Carter often is mentioned in local gossip columns because of his romantic relationship with R&B singer Beyonce Knowles. Last week, he denied rumors that the couple had married in secret.