In his new role of chairman/chief executive officer, Davis, 70, will oversee all operations of Arista, J, RCA and Jive Records, according to Tuesday's Daily Variety.
Before the promotion, Davis was chairman/CEO of the RCA Music Group in which he oversaw RCA and J Records.
Davis, who founded Arista in 1975, was forced out as CEO in 2000 when Antonio Reid, a young, flashy producer, was put in his spot. As a consolation prize at the time, Davis formed BMG's J Records. Late in 2002, Davis was named head of RCA Label Group.
Davis also will oversee BMG Distribution, BMG Strategic Marketing and BMG Canada.
The only BMG North America operations excluded from Davis' domain are RCA Label Group-Nashville, which is led by chairman Joe Galante, and BMG Classics, overseen by chairman Nicholas Firth.
"I have been given the mandate to oversee this operation and the fact that (BMG) has trust in me is very gratifying," Davis said.