CalPERS Joins Lawsuit Against Cable Firm Chief : Courts: Pension fund is a plaintiff in shareholder action alleging that the founder of Century’s parent is overpaid.

In a rare move, the California Public Employees Retirement System is going to court to take on the founder of Century Cable’s parent company, alleging that he is paid too much and is structuring what could turn out to be a sweetheart deal between two companies he runs.

The huge pension fund has joined as a plaintiff in a shareholder lawsuit filed earlier this year in Delaware Chancery Court aimed at bringing pressure against entrepreneur Leonard Tow. Compensation analysts say Tow earned $21.6 million as head of Citizens Utilities, a public utility in Stamford, Conn., and another $10.5 million as chief of Century Communications, a cable concern based in nearby New Canaan.

In the Los Angeles area, Century serves communities such as Beverly Hills, Santa Monica, Redondo Beach and Woodland Hills.

A spokeswoman for Citizens called the allegations old news and without merit, adding that the company is waiting for a ruling on a motion it filed in Delaware to dismiss the lawsuit.

CalPERS said the action marks only the third time in seven years that it has gone to court. CalPERS General Counsel Richard H. Koppes questioned whether the Citizens Utilities board is independent in dealing with Tow. Koppes also questioned how Tow can devote himself full time to the two CEO jobs, and suggested Tow is being paid lucratively for what amounts to part-time work.

CalPERS owns 77,411 shares in Citizens and has negotiated unsuccessfully with its board over the Tow issues.

Tow has previously defended his compensation by arguing that he does work the two jobs full time. He has also disputed the $21.6-million estimate, calling it too high.

The lawsuit seeks the return of some of Tow’s salary. CalPERS is the nation’s largest publicly funded retirement system.