Carter, 38, has been 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. “I am pleased to have had the opportunity to build upon the Def Jam legacy.”

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.- more