; and (B) with respect to a covered individual appointed under section 7306(a) or section 7401(1) of this title, an administrative or executive position. . (b) Conforming amendment Section 7461(c)(1) of such title is amended by inserting employees in senior executive positions (as defined in section 713(d) of this title) and before interns . (c) Clerical amendment The table of sections at the beginning of chapter 7 of such title is amended by striking the item relating to section 713 and inserting the following new item: 713. Senior executives: removal, demotion, or suspension based on performance or misconduct. . 202. Improved authorities of Secretary of Veterans Affairs to improve accountability of employees (a) In general Subchapter I of chapter 7 of title 38, United States Code, is amended by inserting after section 713 the following new section: 714. Employees: removal, demotion, or suspension based on performance or misconduct (a) In general (1) The Secretary may remove, demote, or suspend a covered individual who is an employee of the Department if the Secretary determines the performance or misconduct of the covered individual warrants such removal, demotion, or suspension. (2) If the Secretary so removes, demotes, or suspends such a covered individual, the Secretary may— (A) remove the covered individual from the civil service (as defined in section 2101 of title 5); (B) demote the covered individual by means of a reduction in grade for which the covered individual is qualified, that the Secretary determines is appropriate, and that reduces the annual rate of pay of the covered individual