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Or maybe he's an engineer and doesn't think it makes sense to work for residuals?
If it was typical to work for residuals, then the work itself would not pay anything or pay very little. It's the natural outcome since receiving residual pay would make people willing to take a lower salary and increase demand for these jobs. This would keep going until the value of the salary and the expected value of the residual is equalized with other work.
That makes the workers depend on the project (and previous projects) being successful.
This would disproportionately affect the poor population. Unlike the well-off population, they can't take the risk of working for pennies in exchange for potential residuals. A failed project would lead to not being able to afford housing/food.
Meanwhile, the people who can afford the risk of taking residual based work will snowball their wealth as they are able to accumulate sources of passive income.