Rap superstar Jay-Z said yesterday that he will step down from his post as president of Def Jam Recordings, one of the world’s biggest record labels.

Negotiations to renew his contract reached a stand still earlier this month when Jay and the label could not reach an agreement on the exact compensation required for him to continue running the label. Def Jam’s parent company Universal complained that the amount Jay was requesting was simply more than the company could afford to pay.

With record sales lagging across the board, Universal simply couldn’t justify meeting Jay’s figure. Jay-Z, whose real name is Shawn Carter says he has no hard feelings and that it was an honor to serve as President of such a prestigious record label.

“I’ve been incredibly fortunate to have served as president of such a culturally-defining label as Def Jam over the last three years,” Jay said in a statement. “During that time, I’ve had the pleasure of working with many of the world’s most dynamic artists and many of the most dedicated and talented executives in the music business today, including [IDJMG Chairman/ CEO] Antonio “L.A.” Reid. But now it’s time for me to take on new challenges. I am pleased to have had the opportunity to build upon the Def Jam legacy, helping to move the company into a new era of artistic success.”

Under his leadership, Def Jam released top-selling albums from Kanye West, Young Jeezy, Rick Ross, and Fabolous, just to name a few. He also discovered top-selling pop act Rihanna, and as a performer he lent his skills to an array of Universal acts including Amy Winehouse.

Jay will remain as President and CEO of his own Roc-A-Fella Records under the Def Jam umbrella, and will continue as a recording artist for the label.

While he may be leaving his Def Jam post, he certainly won’t be out of a job. In addition to being part owner of the New Jersey Nets, Jay also runs a successful clothing company, nightclub chain, and numerous other businesses.

Jay-Z is one the wealthiest men in the music industry with a net worth in the neighborhood of $400 million.

-Chris Jones