Bill Ackman, whose hedge fund Pershing Square Capital has been among Universal Music Group’s largest investors, said he will resign from his seat on UMG’s board of directors effective Wednesday “due to new executive and board obligations arising from his recent investments,” according to a company statement.

In a brief announcement posted Wednesday hours ahead of the start of UMG’s annual shareholder meeting, UMG said Ackman notified the board of his intention to resign starting today (May 14), and that the board is “very grateful” for his contributions. Ackman, 58, has served as an independent non-executive director on UMG’s board for three years. His term was set to expire in 2026.

Pershing Square has been invested in UMG since 2021, holding as much as 10.25% of the company’s stock by the end of 2023. However, its stake was reduced to 4.9% this year following a planned distribution to limited partners in January and the sale of approximately 50 million shares in March. Despite the reduction, UMG remains Pershing Square’s largest single holding, representing 17% of the firm’s total capital across its funds.

The sale came ahead of Pershing Square’s plan to register its UMG shares in the United States in September. Ackman has advocated for the company to move its primary listing from the Euronext Amsterdam stock exchange to a U.S.-based exchange, saying it would add value for the company.

Earlier this year, Pershing increased its holding of the real estate company Howard Hughs to 46.9% from 37.6%. Ackman was previously the executive chairman of the Texas-based company’s board from 2010 until his 2024 resignation.